Taking its cue from the previous cycle of distress, Deloitte puttogether "a team with multiple capabilities and functionalities,"Langford says. "You have borrowers who might be looking torestructure, extend or renegotiate their debt, lenders with largepools of assets that they either want to manage or evaluate otheralternatives and investors who are interested in different types ofdistressed assets. We work across that spectrum, and with thevarious government agencies, as well. I look at it as a fairlybroad suite of competencies that we can bring to differentconstituents in the market."

|

Based in New York City, Langford now leads a cross-disciplinarynational practice that has grown to more than 60 partners,principals and directors over the last 12 months. They includeseveral strategic external hires with competencies and experiencein debt advisory, rating agencies, debt origination andunderwriting, workout and restructuring, as well as capital marketsand investment banking experience.

|

Because several members of the expanded Deloitte team were onthe job in the days of the Resolution Trust Corp., "we have a lotof skill sets that are being leveraged in the current cycle,"Langford says. He adds that many of those capabilities are beingdeployed into "government-related projects, or alternatively, a lotof work right now is with the lending community."

|

In the last cycle, Langford says, "we worked with the debtors,lenders and investors. There's a focus right now on providingdifferent kinds of support to the lenders, as they start toevaluate what they have and what realistic actions they need totake." Specifically, Langford says that means that with lenders,"rather than just modifying or extending terms, we're working withthem to understand on a case-by-case or asset-by-asset basis whattheir resolution strategy is going to be."

|

Up until now, would-be investors haven't seen many transactions,due largely to banks' tendency to extend loans rather than putassets on the market. "One of the challenges is judging when thetiming and pricing will be right for bidders and sellers torealistically come to the table and start moving product," Langfordsays.

|

He says that individual institutions have to confront thequestion of "whether there's going to be an outright distressscenario or pockets of loans that are sold on a discrete orpiecemeal basis. Understanding what types of situations there arein the market and where a particular investor can play mosteffectively are going to be important."

|

Langford comes to his current position at Deloitte from thecompany's US real estate M&A practice, which he has led since2005, and from its Northeast real estate practice, which he hasoverseen since 2008. He joined Deloitte in 1989.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.