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Throughout the history of U.S. commercial finance, deals have occasionally gone bad. Borrowers default, markets change, collateral loses value--sometimes even the best planned and executed deal may turn out to be the biggest problem in a company's portfolio.
And historically, when a transaction has turned out for the worst, the standard procedure for the lender has been first to try to work out some sort of resolution directly with the borrower and then, failing that, to call the lawyers; time to go to court. Conventional wisdom says litigation is the only way to force the borrower to meet at least most of its obligations and to book something positive from the ...