Banks are asking borrowers to reduce their loans in situations where the value of the property has fallen. Many borrowers are looking at mezzanine lenders to inject cash on their behalf. I don’t believe there is a meaningful role for mezzanine lenders in these situations. Instead, banks should consider a Discounted Pay-Off.
Mezzanine Has No Role to Play in Banks Repairing Loan-to-Values
Banks Should Consider Discounted Pay-Offs Instead of Subordinated Debt
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