Shatz, Schwartz and Fentin Lawyers to Speak at REBA Seminar
SPRINGFIELD — The Springfield-based law firm Shatz, Schwartz and Fentin, P.C. announced that attorneys James Sheils and Steven Weiss were invited to speak to the Real Estate Bar Assoc. (REBA) of Massachusetts today, March 10, 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.
“It’s not unusual for a borrower to have loan relationships from several lenders,” said 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.”
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 lenders’ 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 Weiss, who concentrates his practice in commercial and consumer bankruptcy, reorganization, and litigation.