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Commercial real estate is in crisis — specifically, office buildings.The pandemic unleashed an unpredictable torrent of changes in how people work and live, and the dramatic rise in interest rates over recent months has broken funding models for many property owners.That’s extremely bad news for a lot of investors in the real estate market, but it also creates opportunities for savvy lenders. On this week’s podcast, Will Caiger-Smith asks Rich Byrne, president of Benefit Street Partners, what we can learn from the distress in CRE.

German real estate is very in vogue in distressed land. In keeping with that trend, German real estate investment firm Corestate Capital is trying to turn its ill fate around through asset sales after finally completed its debt restructuring three months ago. The restructuring deal took a whole year to push through after a lot of back and forth with its bondholders and shareholders.The deal was implemented consensually with a large majority of its bondholders and shareholders agreeing to the deal, which involved a 78% haircut in exchange for the noteholders taking over 80% of the company. The reinstated debt was extended to mature in 2026.However, it was not entirely straightforward. After a deal was agreed at the end of last year, the company struggled to find an auditor. It also needed to raise more bridge financing to keep afloat as the restructuring completion took longer than expected.Corestate’s legal advisors Sven Pruefer and Hauke Sattler from Allen & Overy talk us through what landed the company in this mess, the proposals exchanged and what caused the delay in closing the deal.

Explore the recent appeal process of Adler Group and its significance for UK Restructuring Plans. Learn about the challenges faced during the implementation of a solvent wind down and the arguments made by dissenting classes. Discover the differences between UK restructuring plans and other processes, including a new feature called 9-fin AI. Understand the concept of paripasset treatment and the discretion of the judge in sanctioning the plan. Delve into different approaches used in schemes and CVA's, including the allocation of restructuring surplus.

ESG has had a rocky ride in 2023, so how is the legal sector responding?This week, 9fin’s Head of ESG, Jack David talks with prominent sustainability-focused lawyers Sukhvir Basran from Cadwalader and Alex Smith from Eversheds about the evolving world of ESG and sustainability from a legal perspective.We cover the US backlash, the ins and outs of sustainability-linked deals and what the future holds for the ESG within levfin and private credit.

Sami Vukelj, an expert in private credit firms and the secondary market for life insurance policies, discusses the intriguing topic of life settlements. They explore the process of selling life insurance policies, the controversy surrounding life settlements, and the metrics to consider when analyzing life insurance portfolios. Tune in to learn more about this morbid yet fascinating segment of specialty finance.

Mike Scott, Head of Global High Yield & Credit Opportunities at Man GLG, shares his insights on navigating the current debt market challenges. He discusses the impact of rising interest rates on companies with maturing debt, and contrasts US and European credit dynamics. Scott highlights their fundamental analysis approach, detailing strategies to enhance liquidity for businesses during economic pressures. He also delves into investment opportunities and risks across various sectors, including real estate and regional banks.

Debt purchasers face scrutiny over their business models; Nathan Mitchell and Matthew Hughes discuss debt purchaser predicaments, options, and predictions for the years ahead. They explore the impact of rising interest rates, financial challenges faced by Interim and AFE, and ESG risks in debt purchases.

Jess Larsen, founder of Briarcliffe Partners, discusses the surge in investor interest in private credit. Topics covered include the easing denominator effect, underperformance of private equity, challenges in asset-based lending, competition and differentiation in direct lending, adapting to the growing market, and the role of high net worth individuals and retail investors.

Experienced short seller Carson Block shares insights on shorting credit, discusses techniques to uncover fraud, and reflects on past successes and setbacks. The podcast explores the differences between shorting credit and equity, challenges in evaluating credit risk, and manipulation tactics used by companies to appear less leveraged. Additionally, there is a fun comparison between short sellers and the New York Jets' challenges.

In this episode of the podcast, Josie Shillito interviews Christine Ferris from JP Morgan about the rise of private credit CLOs in Europe. They discuss the increase in middle-market CLO issuance, the potential for private credit CLOs in Europe, and reflections on starting a career in finance. They also touch on the challenges of balancing work and motherhood.