Kramer Levin’s Funds Talk provides legal commentary on the news and events that matter most to asset managers and funds.
Topics covered in this issue include:
Commercial Property Assessed Clean Energy Programs Can Help Businesses Preserve Equity
Commercial Property Assessed Clean Energy (CPACE) programs can offset the cost of green building and design features — and in some cases the funding is available retroactively. CPACE financing can help commercial property owners meet new energy-efficiency requirements while preserving their equity. A robust CPACE market provides investors with secondary opportunities through assessment purchases, bond purchases and securitizations.
Second Circuit Addresses Disgorgement of Short-Swing Profits by Hedge Funds and Their Investment Advisers
On Nov. 23, 2020, the Second Circuit Court of Appeals issued an opinion by Judge Jon O. Newman in Packer v. Raging Capital Management, reversing a magistrate judge’s summary judgment order that had found Raging Capital Master Fund Ltd. to be a “beneficial owner” of more than 10% of the shares in 1-800-Flowers.com Inc. and therefore required, under Section 16(b) of the Securities Exchange Act of 1934, to disgorge nearly $5 million in short-swing profits.
We Can Work It Out: Overcoming Obstacles to Real Estate Workouts
Real estate lenders and borrowers everywhere are trying to figure out what to do with properties that are either sitting vacant or underperforming pre-pandemic expectations. In New York, a number of mezzanine foreclosures have been pursued, with varying degrees of success when challenged in court.
Taking the “Stress” Out of Distressed Condominium Investments
While many real estate developers are grappling with the costs of the COVID-19 pandemic, astute investors are surveying opportunities, particularly in distressed condominiums. COVID-19 has shined a spotlight on the vulnerabilities of the New York new-development condominium market, highlighting underperforming projects throughout the city. This article is intended to guide savvy investors in capitalizing on this current market.
Letters of Intent: A Litigation Trap for the Unwary
Letters of intent, or LOIs, serve an important purpose in corporate deals and M&A, and their use is widespread. Equally widespread is litigation concerning their enforceability. Unless commercial parties are careful, they may find themselves embroiled in litigation even though they never intended for their preliminary agreement — whether in the form of an LOI or a term sheet — to be enforceable.