Spencer Fane attorney Sherry Dreisewerd recently outlined strategies for addressing nonperforming loans, including key terms that must always be incorporated into loan workout and forbearance agreements, in an article published in the latest issue of The Show-Me Banker, a bimonthly publication from the Missouri Independent Bankers Association.
In her Legal Eagle Spotlight feature, Loan Workouts: What Lenders Need to Know, Sherry shares that banks will increasingly face the need to restructure loans in their portfolios as the current environment for CRE loans persists. Thus, it is crucial to review the fundamentals of dealing with problem real estate loans.
Sherry notes in her article, “Ultimately, if the borrower is not able to get the loan back on track, a carefully negotiated and well-drafted forbearance or loan workout agreement can strengthen the bank’s collection position, streamline the liquidation process and protect the bank against claims by a borrower. Prompt and decisive action, based on a thorough understanding of the loan, the borrower, and the bank’s negotiating leverage, will improve the bank’s prospects for recovery on the defaulted loan.”
At Spencer Fane, Sherry co-chairs the Financial Services Practice Group and leads the Banking Subgroup. In her practice, Sherry helps lenders close complex financial transactions. Sherry works with national, regional, and community banks to originate real estate, commercial, industrial, and asset-based loans. She also helps lenders maximize loan recoveries through restructurings and workouts.