03/11/2023
The next shoe to drop…on Monday the FDIC is most likely to announce that another bank has acquired the assets of SVB…this is the normal process. But if you have loans (C&I or Commercial RE), you better sit down with your general counsel and CFO. The aquiring bank will quickly review all loans and if your entity in not in compliance (ie 75% LTV) in their eyes…not yours, you can expect a demand letter to bring your loans back into compliance. They will require you to write a very large check which often is impossible. There are alternatives but once you’re notified…the clock is ticking. Fenwick R&C specializes in negotiating these situations with failed banks so give us a call if you have any questions. 847-380-0111