The creation of commercial mortgage backed securities (CMBS) helped fuel the property market in recent years but the collapse in property valuations means many of these deals are already in breach of their loan-to-value covenants. Creditors are looking at how to restructure these hugely complicated deals.
“CMBS deals are very complex and there is a high risk of some creditors being able to hold out,” says Gareth Davies, a managing director, at Close Brothers.
