Jennifer Marines spoke to Reuters Legal for an article covering how the COVID-19 pandemic will continue to push companies in many industries into bankruptcy in the coming months.
In the real estate industry, the current trend of lenders accommodating debtors by extending deadlines applies to landlords as well as tenants. But eventually, banks will find themselves forced to accept their losses, according to Jennifer.
“When that happens, we are going to see a real shift in the banks' tolerance level,” Jennifer said. “It will lead to increased lender oversight of landlord-tenant workouts and lease negotiations, which will inevitably result in more Chapter 11 filings by the end of this year or the first quarter of next year.”
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