Lowe Enterprises and Terranea Resort

There are all kinds of fallout victims from collapsing banks worldwide.  One of them, Lowe Enterprises and its affiliates, turned to Manatt for help in restructuring $350 million in debt after the FDIC seized Corus, the failed construction lender for Lowe’s 580-room Terranea Resort condominium project on the Southern California coastline.

Manatt first tried to work with Corus and FDIC officials to extend and modify the debt.  When the FDIC sold the loan and Corus’ remaining assets to a Starwood Capital-led group, our lawyers had to begin negotiating anew.  Undaunted, we worked with Starwood Capital to restructure the $350 million of first and mezzanine loans.  In recapitalizing the property and resolving more than 170 mechanic’s lien claims, Manatt helped make Terranea a towering symbol of life after the downturn.