DIVIDENDS

KNOW THYSELF AND IT WILL WORK OUT:

Workout of Commercial Real Estate Loans In Today’s Economy

By:  Moses Luski

I.  THE PROBLEM:  Lack of Liquidity in the Banking System Results in a Tightening of Credit and Creates a Severe Recession

The unprecedented recession that befell the American economy commencing in the Fall of 2007 and from which we are just beginning to emerge has created extraordinary problems for all commercial enterprises that rely on the use of credit to conduct business operations.  The present calamity manifested itself in a bank liquidity freeze which reduced lending to a trickle.  The lack of credit in turn affected general economic activity, reducing the revenue streams which businesses rely upon to pay existing indebtedness, including indebtedness secured by commercial real estate.  This destabilizing feedback loop has put both prudent and recklessly managed businesses under extreme economic pressure which in most cases could not have been anticipated.  The discussion which follows deals with the workout of loans secured by commercial real estate.

II.  HOW THE PROBLEM IS ADDRESSED:  Self-Knowledge and Succinct Analysis Establishes a Game Plan for the Favorable Workout of Existing Commercial Indebtedness

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IS YOUR COMPANY COMPLIANT?

Antitrust Enforcement to Increase Significantly

By:  Michael M. Briley

The current Administration in Washington, D.C. has announced that it intends to significantly increase the level of federal investigation and review of antitrust issues ranging from unlawful collusion to mergers.  The heads of both federal enforcement agencies (the Department of Justice and the Federal Trade Commission) have already increased dramatically their agency’s efforts in this area.  In 2009 alone, the Department of Justice collected over $1 billion in fines for antitrust violations and prosecutions have resulted in prison sentences for a number of executives.  With Congress approving the ten year reauthorization of the Antitrust Criminal Penalty Enhancement and Reform Act (”ACPERA”) this year, criminal prosecutions for antitrust violations are expected to increase dramatically.  The ongoing civil litigation suit liability cost to companies that violate the antitrust laws will likely also increase dramatically in 2010-2011.  Accordingly, it is more important now than perhaps ever before that companies have in place a good corporate antitrust compliance program that meets all of the required elements for federally qualified compliance programs.

A properly designed and implemented corporate antitrust compliance program has the benefit not only of educating employees regarding lawful and unlawful conduct (thereby helping to protect the sponsor company from criminal investigation and subsequent civil suits) but, moreover, properly qualified programs will serve to substantially reduce any fines awarded against a company which is found to have violated the law.

Shumaker, Loop & Kendrick, LLP has substantial experience in designing and implementing qualified antitrust compliance programs for its clients.  While certain elements of each compliance program are mandated (for example, the creation of a compliance policy and written direction for employees, training and audit protocols, etc.), our firm has been successful in working with its clients to design compliance program for each client that meets not only its legal objectives, but its budget as well.

We would be happy to put our over 35 years experience in the area of criminal and civil antitrust law to work for you.

Michael M. Briley is a partner in Shumaker’s corporate practice group in the firm’s Toledo Office.  His principal areas of practice are antitrust and trade regulation and transportation law.

Joseph (Jack) Santaniello
First Citizens Bank Building
128 S. Tryon Street, Suite 1800
Charlotte, NC 28202-5013
Phone 704-375-0057 Ext. 2141
Fax  704-332-1197
jsantaniello@slk-law.com
www.slk-law.com
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