News
Advice for Workouts
December 19, 2008
| It’s been 15 years since the last big wave of workouts, so junior executives in real estate haven’t dealt with such a recession. Gibson Dunn attorney David Furman witnessed 20 years of boom-and-bust markets so we stopped by his MetLife Building office to talk about handling this new era of workouts. |
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| Here’s what he told us: Be prepared: Know your loan docs, who your lendersor borrowers are, what personal liabilities you have, and what your options are. Good legal counsel can help you find weaknesses in your loan documents. Have a plan: You don’t want to go into a meeting with your lender or borrower not knowing what you’re going to do. Don’t overplay your hand: Remain calm, considerate and conciliatory. You may be working with the person across the table from you when the market turns up; some of David’s best clients today are ones he went through workout battles with in the early ‘90s.Consider the costs: Decide who’s going to pay fees, and realize that workouts and restructurings areexpensive and have tax consequences. |
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| Did you know that David’s not only a pro at real estate workouts, but physical workouts, too? Before our meeting, he was at the Velocity Sports Performance gym, doing sled pulling exercises (perhaps a tryout for Santa’s tenth reindeer). He’ll soon head to Vermont for skiing and hiking with his family. |
