Lease Workouts and Lease Default Remedies

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“Lease Workouts and Lease Default Remedies” Matt Marino of Allen Matkins presented a brief discussion panel on lease workouts and related issues involving bankruptcy and lease default remedies in California. “As a consequence of the current economic conditions, many tenants are in financially precarious positions and are seeking to lower their overall occupancy costs by restructuring their existing leases. Consequently, these requests are being made with increasing frequency. Because many brokers, leasing representatives, property and asset managers and other real estate professionals have not previously been through a down cycle of this magnitude.”

This program gave legal as well as practical advice on how to successfully negotiate the re-structuring of a lease and provided an overview of how bankruptcy issues and litigation strategies affect the negotiation process. Specifically, he addressed various types of lease workouts and related pitfalls from the perspective of a landlord, tenant and lender.