Restructuring a Bank Loan in Default: Globex Storage Company

What strategy should the head of commercial real estate and chief credit officer of a bank employ when confronted with the default of a large construction loan?
Lynne Sagalyn  | Spring 2010
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Patricia Goldstein, head of commercial real estate and chief credit officer of Emigrant Bank, has been asked to review the status of the bank’s share of a $115.2 million construction facility which has recently gone into default. This case presents students with background information on this loan— including the capital stack, commitments and outstandings, the transaction summary/term sheet, and the operating financials of the company holding the loan—and asks them to consider what strategy would best help Goldstein to meet her objectives for the loan.

Case ID: 101705

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