"Business Bankruptcies: Filings Down, but Workload Isn't," Texas Lawyer
In an article discussing the decline in business bankruptcies are in Texas, Porter Hedges partner Elizabeth Freeman was quoted as a commercial bankruptcy lawyer who indicated that their workload hasn't decreased -- it's just changed.
"Elizabeth Freeman, a partner in Porter Hedges in Houston, says her firm continues to negotiate 'amend and extend' agreements for clients in what she views as the most troubled industry right now: real estate. So far, she says, lenders are amenable to out-of-court arrangements with debtors, since the banks don't want to pull loans off their books and therefore face a deluge of federal regulatory reporting requirements. But Andrews says 'amend and extend' for real estate companies won't continue ad infinitum.
Among her clients who have filed Chapter 11 are developers with strip malls that never were fully leased and therefore don't have sufficient cash flow to pay their debts. She says she also represents developers who have construction loans they cannot pay because they haven't been able to sell properties whose value dropped significantly since the developers took out the loans."
For the full article, see here.