An inescapable result of high interest rates and post-pandemic trends is downward pressure on commercial real estate valuations, especially in the office sector. Given commercial mortgage-backed securities and other deal structures in which control of the loan rests with the lowest priority interest that is in the money, reduced valuations will likely become the flashpoint for CRE litigation.
Commercial real estate (CRE) sectors have not escaped the perma-crisis era in which we live, and the worst appears yet to come. First, hospitality and retail suffered setbacks with pandemic lockdowns. Then, the persistence of work-from-home and employee resistance to returning to the office drastically changed the flow of workers to the office and urban centers. Now, before those issues are...
2023 may create the harshest conditions yet for the cannabis industry. The economy was already expected to be a challenge to profitability and now turmoil in the banking sector may further distract Congress from passing meaningful marijuana banking legislation, continuing to limit access to credit. Yet, as the market continues its inevitable march toward federal legalization, it is possible to...
Around the time Reuters published our article regarding bankruptcy eligibility, the U.S. Bankruptcy Court for the Central District of California (LA Division) issued a decision in In re The Hacienda Company, LLC, that thoughtfully articulates the balancing of governmental policies, bankruptcy purposes and creditors’ rights a bankruptcy court should engage in when dealing with cannabis and...
Going forward, it looks like crypto companies that make it in New York will be able to make it anywhere. All over, at the state and federal level and internationally, turmoil in the crypto industry is leading to increased scrutiny. In New York, home of the comprehensive (some would say onerous) BitLicense, cryptocurrency mining has been partially banned and the New York State Department of...
For the past two years, the subprime auto market has defied expectations, but 2023 is off to a cold start. Normalization is on the horizon, but when we will get there and what it will look like when we do, remains unclear. What is normal in this moment is to ask whether the performance data is a sign of deeper trouble. And if so, will the structural protections in auto ABS continue to protect...
As we learn more about FTX’s operations, speculation is slowly giving way to certainty. It’s clear FTX’s collapse will have a deep impact on the future of regulations, its bankruptcy will help create the blueprint for clawbacks in the crypto space, and potential tensions between the trustee and foreign liquidators could forge new jurisdictional law.
