Houlihan’s Burian: Hospitality, Healthcare and Coal Companies Top Restructuring Candidates

Commerical real estate restructurings likely will pick up because the commercial mortgage backed bond market does not have as much capacity to finance new loans and lenders are not as readily extending mortgages for commercial properties, Saul Burian, a managing director at Houlihan Lokey, tells Bloomberg Brief’s Aleksandrs Rozens. Burian also said his firm is not actively seeking to rebuild its dedicated sovereign restructuring group.

Q: What are you seeing in terms of real estate restructurings?

A: Most of the CMBS deals had limitations on extensions, on average two years. Some had three-year extensions. What we’re seeing now is these consensual restructurings that were done early in the cycle are reaching the end of their extension periods. We think hospitality and other assets will become available as we reach the end of the CMBS extensions. CMBS debt that is available for refinancing is relatively inexpensive, but the amount of CMBS debt is more constrained than it used to be.

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