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Mortgages: After Another Tough Week, Hint of Daylight for ThreeAmerican BankerMarch 20, 2007 Robert Nachman, a principal in the firm's Bankruptcy, Insolvency & Creditors' Rights practice, was quoted by American Banker for an article discussing the financial problems plaguing the subprime lending industry. According to Mr. Nachman, "many subprime firms are trying to sell assets in the short term in an effort to avoid bankruptcy." He calls the current crisis, "a recipe for a less than optimal reorganization" and says "there is no reason for a troubled lender to keep employees on the payroll." Mr. Nachman adds, "there will certainly be a flurry of reorganizations of some sort, whether it takes place in bankruptcy or a private sale of assets. I think what we're seeing now are companies trying to continue their operations in an effort to preserve value for a potential buyer." The article, "Mortgages: After Another Tough Week, Hint of Daylight for Three," appeared in the May 20, 2007 issue of the publication.
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