Linda V. Donhauser

Represented a municipal authority in connection with the Maryland Chapter 11 filing of one of its commercial customers. We obtained orders on two emergency motions, requiring the debtor to provide adequate assurance pursuant to Section 366 of the Bankruptcy Code and for relief from stay to permit certain state court litigation to proceed in order to perfect municipal liens. We also advised and assisted our client in efforts to collect water and sewer payments directly from the debtor’s tenants and handled disputes with a Chapter 7 trustee over collection of those amounts.

Represented lender in connection with a $7 million source loan to a leveraged lender in a new market tax credit transaction involving the renovation and construction of a public market in a major metropolitan area.

Represented lender in the documentation of construction loans for the construction of mixed-use projects including commercial and affordable housing units.

Represented a lender in connection with a workout involving a cooperative that owned an apartment building.  The apartment building converted to a condominium regime, and the workout involved complex issues involving real estate law, including rent control and tenant rights under local law.  We subsequently represented our client in negotiating and closing on a note sale, under which our client received a significant recovery of its outstanding debt.  

Represent the borrower in a workout of a bond financed graduate student housing project in a major metropolitan area. The project has not been able to meet the necessary occupancy levels in order for the project to generate sufficient revenue to cover operating expenses and debt service. We are in the process of negotiating a restructure of the bond debt outside of Chapter 11, and are also working with our client and the bondholders to secure alternative funding sources, including possible funding from quasi-governmental entities. The case is complicated due to the debt structure, which includes tax- exempt bond financing.  We also represented our client in obtaining a secured line of credit from one of the bondholders, to ensure an appropriate level of operating capital during the restructuring process.

Represented a national trust company, which was the trustee under a mortgage funding trust, in several bankruptcy cases.  We were hired on the eve of the deadline to object to confirmation of a joint plan that was not in the best interest of our client.  After several days of contested confirmation hearings, and contested hearings to determine the precise language in the confirmation order, we fully protected the interests of our client.  Subsequently, we represented our client in a contested hearing over whether a settlement, which was not in the best interest of our client, should be approved.  The Court agreed with our arguments, and did not approve the settlement. Our client was able to negotiate a favorable settlement with the debtors regarding the allowance and payment of its claims, which were subject to pending litigation in state court.  

Represented the senior secured lender in a Chapter 11 bankruptcy case filed in the United States Bankruptcy Court for the Western District of Pennsylvania.  The Debtor owned and operated a hotel, which was the collateral for our client’s loan. The case was complicated due to junior lienholders and the franchisor, whose interests were not aligned with the interests of our client.  The case was also challenging due corporate governance and control issues involving the Debtor entity and its members. The case started in an adversarial manner, but we were able to negotiate a consensual Plan of Reorganization, which resulted in our client maximizing the value of its collateral.

Represented lender in the documentation of various warehouse lines of credit used by CDFI’s to fund real estate loans.

Represented a national lender in a workout of multiple credit facilities involving term loans and lines of credit, which was secured by various pieces of real estate and UCC collateral. The borrower was a health care provider who has over 30 health care facilities. We represented our client in negotiating and documenting a restructure of the loan, which positioned the borrower to ultimately obtain refinancing and pay our client in full. The case involved a complex finance structure, and we also advised our client on lender liability allegations asserted by the obligors.