Balch’s Bond Recovery Practice draws on the Firm’s expertise in public finance, bankruptcy, real estate, health care, and litigation, working together to maximize recoveries in bond issuances that are in or nearing default.
We serve as counsel for indenture trustees, escrow agents, institutional investors/bondholders, bond issuers, credit enhancers, bond insurers, borrowers, and insurers in restructurings, workouts, bankruptcies and litigation.
The Bond Recovery Practice works to maximize recoveries through workouts, foreclosures, receiverships, and bankruptcies through its practical knowledge of the bond markets, the structure and documentation of bond transactions, the tax rules relating to tax-exempt bonds, securities laws in municipal issues, and the applicability of the various chapters of the Bankruptcy Code to bond issue defaults.
As an indenture trustee, the primary goal after a bond goes into default is to preserve the value of the bondholders’ collateral and maximize the bondholders’ return. Often this goal cannot be accomplished when the collateral is under a borrower’s control. While the secured creditor may have the right to foreclose, local law and other procedures may not always allow this to happen quickly enough to ensure value of the collateral is preserved.
Attorneys in the Bond Recovery Practice represent indenture trustees throughout the country in appointing receivers to take control in such circumstances. Such collateral includes real estate-based bond assets, housing and economic development projects, health care facilities, solid waste disposal facilities, 501(c)(3) facilities, municipal infrastructure, manufacturing facilities, and multifamily and affordable housing facilities. Our vast experience has allowed us to develop a broad network of relationships which position us well to assist indenture trustees in the selection of a receiver.
Balch also has experience in escrow issues, non-judicial foreclosure, foreclosure litigation, and complex workout design and implementation in states throughout our firm’s footprint.