Lenders and borrowers enter into agreements expecting profitable relationships, however “If things go south, as they can and do, an intercreditor agreement can be a critical component to the orderly liquidation of collateral to repay all lenders,” said Attorney Sheils. This is a complex area of the law and Shatz, Schwartz and Fentin attorneys are available for assistance.
Local law firm, Shatz, Schwartz and Fentin, P.C., serving Massachusetts, Connecticut and New York, today announced Attorneys James B. Sheils and Steven Weiss were invited to speak to the Real Estate Bar Association (REBA) of Massachusetts regarding a complex area of the law, intercreditor agreements. REBA members include lenders, buyers, sellers, owners, landlords and tenants – all of whom have a vested interest in understanding the financial responsibilities and rights of the commercial real estate market. Shatz, Schwartz and Fentin was recognized as a leader of business, finance and real estate law within the Commonwealth and invited to share expertise at the seminar in Boston. The event will take place on Tuesday, March 10 from 12:30 to 2 p.m. ET at REBA – 50 Congress St.
“It’s not unusual for a borrower to have loan relationships from several lenders,” said Attorney Sheils, who concentrates his practice in commercial finance law, creditors’ rights and banking law. For example, the senior lender could be a bank that is supplemented by a junior lender such as a government agency that provides advanced funding for a particular project. “Frequently, both loans are secured by the same property [or collateral] of the borrower. When that occurs, an intercreditor agreement is often required by the senior lender,” said Sheils.
Intercreditor agreements confirm the rights and liabilities of each creditor, or lender, and their impact on the other creditors. Drafted properly, they prevent confusing and often inefficient processes of exercising lender’s rights should a borrower’s financial condition deteriorate.
“Intercreditor agreements often include rights for the junior lender to buy-out the senior lender’s claims and liens if the borrower declares bankruptcy, but there is uncertainty in the extent to which intercreditor agreements are enforceable in bankruptcy cases,” said Attorney Weiss, who concentrates his practice in commercial and consumer bankruptcy, reorganization and litigation.
Lenders and borrowers enter into agreements expecting profitable relationships, however “If things go south, as they can and do, an intercreditor agreement can be a critical component to the orderly liquidation of collateral to repay all lenders,” said Attorney Sheils. This is a complex area of the law and Shatz, Schwartz and Fentin attorneys are available for assistance.
Attorney James B. Sheils, a resident of East Longmeadow, is a graduate of the Boston College Law School (1975) where he was the recipient of the John F. Cremens Award for legal services work. Attorney Sheils also attended the College of the Holy Cross, where he graduated with a Bachelors of Art and cum laude honors (1972). He has been awarded by the Goodwill Industries of the Pioneer Valley – John Auchter Award (2012) – and selected to the Best Lawyers® in America list. He has been the Town Moderator for the Town of East Longmeadow for many years.
Attorney Steven Weiss, a resident of Longmeadow, supervises the firm’s bankruptcy, reorganization and workout practice, represents creditors, debtors, and others in both commercial and consumer bankruptcy cases throughout Massachusetts. He is a graduate of the Boston University School of Law (1984) and he also attended Michigan State University, earning a Bachelor of Arts (1980), and the Massachusetts Institute of Technology (1976-1977). He has been recognized for his legal success by selection to the Super Lawyers list (2007-2014) and Best Lawyers® in America (2013-2015).
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