In Part I of our series, we discussed the current market trends, new legislation and reality of another potential real estate/hospitality down cycle, though not as severe as in 2008. In Part II, we showcased the issues we see when working with distressed situations and how they can drastically change the outcome. In our final part, we discuss guaranties and their impact on a successful restructuring.

Guaranties

Analyzing guaranties, personal or corporate, as well as their collectability is crucial in analyzing restructuring options. Without personal guaranties in place, negotiations can begin from a position of strength. With personal or collectible corporate guaranties in place, detailed analysis is crucial to a negotiated outcome.