In any CMBS deal the bonds have a legal final maturity and the loan has a legal final maturity and the two will be different. It is the special servicer’s job to maximize recoveries for all bondholders until the legal final maturity of the notes, upon which that mandate passes to the senior bondholders. The structures also incorporate an operating adviser, which has no rights or powers other than consultation rights – this is usually the junior noteholder.
Senior bondholders are increasingly frustrated by junior noteholders’ ability to extend the life of distressed CMBS structures but they do not have the right to insist on enforcement.
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