Fundamental differences between standard commercial mortgage-backed securities pooling and servicing agreements (PSAs) and the U.S. bankruptcy process could be a significant issue in future workouts. The conflict emerged during the bankruptcy proceedings for Extended Stay, a CMBS borrower that filed for Chapter 11 in mid-2009, but was resolved mostly within the guidelines of the deal's PSA. "This issue looms over the entire industry," said Mark Edelstein, chair of Morrison & Foerster's distressed real estate group. "Given the amount of CMBS debt coming due in the next few years, it would not be a surprise to see this coming up again." If an ....

The content you are trying to view is restricted for Real Estate Finance Intelligence
subscribers.

To continue reading, please log in below, subscribe or take a free trial.

Subscribe

Start your Real Estate Finance Intelligence service today for full access

Subscribe

Free Trial

Not ready to subscribe?

Register today for a free trial.

Free Trial