Lending Due Diligence

We counsel lenders on the environmental liabilities involved in taking environmentally impaired property as collateral, and we represent borrowers seeking to use contaminated property as collateral. Likewise, we assist lenders and borrowers in selecting qualified consultants and contractors, negotiating and drafting environmental consulting agreements and confidentiality agreements, and counseling consultants and clients on various aspects related to the confidentiality of audit findings. We also provide counsel to lenders and borrowers on the legal requirements involved in the foreclosure of contaminated property and the discharge of environmental expenses in bankruptcy proceedings.

Our environmental lending experience includes the following:

  • Counseled an international lender with respect to environmental issues related to a $20 million loan to joint venture textile manufacturers with facilities in five southeastern U.S. states.
  • Represented a European lender in evaluating environmental liabilities related to foreclosure on equipment at a pulp and paper mill.
  • Negotiated on behalf of a lender, obtaining approval of the U.S. Environmental Protection Agency, the U.S. Department of Justice and the Georgia Environmental Protection Division for the sale of a mortgage on property listed on the Georgia Hazardous Site Inventory.
  • Drafted and negotiated environmental provisions on behalf of a borrower in $900 million credit agreements for purchase of electric-generating power plants in China and South Asia.
  • Assisted numerous lenders in obtaining liability protections on foreclosed property through state brownfields and voluntary remediation programs. We also prepared properties for sale to end-users.