Pivot Points Newsletter: August 2021

9/29/2021

Receive and explore monthly insights from our Restructuring & Dispute Resolution team

Performance stress in the CMBS market has increased scrutiny of loan quality and transaction compliance. CMBS market participants should prepare for potential disputes – especially in the current environment.

In this Q&A, CohnReznick’s Jim Aronoff and Charlie Campbell share their insights on what lies ahead for financial institutions and talk about why they decided to join the firm.

We're proud to announce that our Restructuring and Dispute Resolution (RDR) practice recently earned two Global M&A Network Turnaround Atlas Awards:

Turnaround of the Year Small Markets Award. Kudos to Molly Jobe on this achievement!
Chapter 11 Restructuring of the Year Small Mid-Markets Award. Kudos to Kevin Clancy, Vinni Toppi, Ying Zheng, and CohnReznick Capital’s Jeff Manning on this achievement! Read the press release.

Molly Jobe has been honored by M&A Advisor as a recipient of the Annual Emerging Leaders Awards. The awards honor the achievements of young professionals who are under the age of 40.

Congratulations to Kevin Clancy who recently earned the Certified Turnaround Professional (CTP) designation from the Turnaround Management Association. This designation recognizes Kevin’s hard work and commitment to the industry.

Forensic Loan Reviews – Residential Mortgage-Backed Securities (“RMBS”)

Background: We were retained to design, implement and manage a forensic loan review of more than 250,000 residential mortgage loans underlying more than 200 trusts in accordance with specific procedures approved by the Bankruptcy Court, as well as prepare extensive reports on our findings and submit claims for loans where breaches were discovered.

Our Role: Forensic Loan Review, Data Analytics, Claims Submission, Consulting Expert and Expert Witness

Results: Based largely upon our discovery of more than 100,000 breach findings and submission of over 70,000 claims, our clients obtained a $2.4 billion settlement.

Commercial Mortgage-Backed Securities (“CMBS”) Litigation

Background: We provided expert opinions regarding custom, practice, and the common industry understanding of certain provisions of the securitization agreements, including the waterfall provisions and certain duties of the special servicer, as they relate to the creation of reserves for certain CMBS certificate holders.

Our Role: Consulting Expert and Expert Witness

Results: We provided expert reports and testimony, and assisted counsel by conducting additional research and analysis used to plan and conduct the depositions of opposing expert witnesses. The case is still pending, and we expect to testify at trial.

Residential Mortgage-Backed Securities (“RMBS”) – Loan Servicing Practices

Background: An RMBS trustee, on behalf of investors, sued an RMBS loan servicer claiming the servicer allegedly failed to identify and report breaches of the related loan representations and warranties, as required pursuant to the transaction documents.

Our Role: Consulting Expert and Expert Witness

Results: We provided an expert report, an expert rebuttal report, and deposition testimony to offer and defend our opinion regarding the duties of an RMBS servicer. The case is still pending, and we expect to testify at trial.

Global specialty pharmaceutical company

Our role: Financial advisor to the First Lien Term Noteholders

Digital Media

Our role: Buy side advisory for a publicly traded entity seeking to grow through multiple acquisitions

Real Estate

Our role: Financial advisor in a pending Chapter 11

TMA - Annual Golf & Tennis Outing (Sept. 27) – Attended

HNBA - Hispanic National Bar Annual Convention (Sept. 27-29) – Attended

SFA West - Structured Finance Association (Oct. 3-6) – Attending

TMA - Golf Outing (Oct. 5) – Attending

NCBJ - 95th Annual Conference (Oct. 6-9) – Attending

NYBF, CCC, & WHOW - Fall Soiree (Oct. 12) – Attending

21st Annual International Insolvency Conference (III Global) (Oct. 18-19) – Attending

ABI - Health Care Program (Oct. 25-26) – Attending

TMA - Annual Conference (Oct. 25-26) – Attending

SFNET - 77th Annual Conference (Nov. 3-5) – Attending

GICLI - 7th Annual Meeting (Nov. 8-10) – Advisory Board Member, Speaking

AIRA - 20th Annual Advanced Restructuring & POR Conference (Nov. 15) – Attending, Planning Committee Member

ACG - Florida Capital Connection (Nov. 16-18) – Attending

ABI - Winter Leadership Conference (Dec. 9-11) – Attending

SFA East - Structured Finance Association (Dec. 13-15) – Attending

Related Services

_{This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.}