Moved to
Special Assets
Your lender just changed the rules. Don’t go it alone.
Once your loan is transferred to special assets or a workout group, the lender is no longer focused on preserving the relationship—they’re focused on minimizing their risk. Our restructuring attorneys know how to level the playing field and protect your business at every step.
When Your Lender Moves You to Special Assets, Everything Changes
Being reassigned to your lender’s special assets or workout group is one of the clearest signs that they’ve lost confidence in your business. Whether triggered by covenant violations, payment delays, or negative financial trends, the move signals that the lender is preparing to take a more aggressive stance.
What It Means to Be in Special Assets
When a loan is moved to a special assets division, you're no longer dealing with your relationship banker. You’re now working with a specialist whose job is to minimize the bank’s risk — not to help you succeed. That often means:
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Increased reporting demands
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Accelerated payment pressure
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Reduced flexibility
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Potential loan calls or default declarations
Many borrowers find themselves blindsided, overwhelmed, and outmatched — and make costly missteps as a result.
The presence of seasoned restructuring counsel—even in a "backbench" role—can deter aggressive moves by lenders and creditors. We signal that Chapter 11 is a viable option without making it your first move.
Why Lenders Make the Move and What Comes Next
The decision to reclassify your loan is usually based on a combination of warning signs. It doesn’t necessarily mean the end — but it’s a signal to take action. Lenders in special assets groups are far less patient, and they’re trained to reduce exposure, not preserve relationships.
If you delay, ignore requests, or try to “wait it out,” you may end up triggering enforcement actions, reputational harm, or worse. But when you respond strategically — with experienced legal and financial guidance — you can often negotiate a path forward.
We support out-of-court workouts that protect your business and relationships. With us on your team, creditors know you’re serious, but still open to resolution.
Strategic Counsel That Levels the Playing Field
We’ve represented businesses of all sizes who were reassigned to special assets. Sometimes we step in as strategic standby counsel to support negotiations behind the scenes. Other times, we take the lead to:
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Negotiate forbearance or loan modifications
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Stop predatory lender tactics
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Restructure obligations out of court
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Create leverage through credible alternatives like Chapter 11
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Preserve your team’s time and focus so the business can operate
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Whether your lender is threatening to call the loan or just squeezing you for cash, we help you slow things down, negotiate from strength, and preserve what matters most.
If You’ve Been Moved to Special Assets, It’s Time to Talk
You’re not alone — and you’re not powerless. The sooner you bring in experienced restructuring counsel, the more options you have. At EmergeLaw, we’ll help you assess the situation, respond strategically, and make sure your next move is your best one.