Steven E. Ostrow

Steve Ostrow is a Partner in the Financial Restructuring and Bankruptcy and the Real Estate and Finance groups. For more than 35 years, he has represented secured and unsecured creditors in bankruptcy and foreclosure proceedings as well as property owners, tenants, sellers and purchasers in commercial leasing and sales transactions, particularly in the mid-Atlantic region of the country.

Foreclosures/Workouts and Receiverships

Steve represents lenders (including administrative agents and servicers), institutional investors, equipment financiers/lessors and other secured creditors in foreclosures, credit restructurings, intercreditor agreements and complex asset recovery and repossession proceedings. He advises clients at all levels of the capital structure in a wide variety of structured transactions, including mortgage loans, asset-based loans, mezzanine loans, participations and other co-lender and intercreditor arrangements. He focuses on maximizing recoveries through workout agreements, judicial foreclosures of real estate collateral and Article 9 UCC foreclosures of equity interests, equipment, inventory and receivables. Steve has foreclosed upon a myriad of real property such as office buildings, hotels, shopping centers and apartment buildings. 

Steve has also represented property and rent receivers in foreclosures and consensual private sales of shopping centers, office buildings and other commercial properties in the Mid-Atlantic region. Steve advises receivers in connection with their management, sale and leasing of receivership property, and the recovery and distribution of receivership assets.

Commercial Leasing and Sale of Real Property

Steve represents sellers, purchasers, mortgage lenders, landlords and tenants in commercial leasing and sale transactions of office, retail, hospitality, mixed-use and industrial space. His representations include all types of businesses, real estate investment companies and funds, real estate developers, mall owners and property receivers.  

The real estate work includes the negotiation and preparation of sale agreements, leases, subleases, purchase options, assignments, easements, estoppel certificates, REAs, SNDAs and recognition agreements. Steve also handles the workout or litigation of commercial sales or leasing disputes often regarding sale contingencies, title and due diligence issues, early tenant closures, renewal options, kick-out rights, rights of first refusal/offer, holdover tenancies, lease assignments/sublets, operating expenses and percentage rent issues, operating covenants and co-tenancy and exclusivity clauses. Steve has also represented property owners, counties and municipalities in many Rails-to-Trails projects in Pennsylvania such as the Hay Creek Trail, the Nor-Bath Trail and the Delaware and Lehigh Canal Corridor Trail.

Creditor Work in Chapter 7, 11 and 15 Bankruptcy Proceedings

Steve has substantial experience advising secured creditors seeking to enforce their rights and claims in Chapter 7, 11 and 15 (cross-border) bankruptcy proceedings. He represents secured creditors in cash collateral, DIP financing and stay relief motions. Steve also protects secured creditors interests in connection with free and clear asset sales, proposed plans of reorganization or liquidation, and objections to lenders’ claims or secured status.

Steve also regularly represents unsecured trade creditors and other contract counterparties in bankruptcies proceedings. To preserve and recover their claims, he regularly files proofs of claims, negotiates critical vendor agreements, asserts suppliers’ and vendors’ reclamation claims and files motions to compel payment for services rendered during the bankruptcy. In addition, Steve defends objections to creditor claims and preferential and fraudulent transfer avoidance actions filed by debtors, trustees and plan administrators in bankruptcy cases.

Steve helps landlords maximize rent recoveries and protect their lease interests in retail and single-asset bankruptcy proceedings by: moving to compel payment of post-petition administrative rent or to obtain relief from the automatic bankruptcy stay to repossess leased space; objecting to motions to sell assets and assume and assign leases with proposed cure amounts; objecting to motions to extend the time to assume or reject leases; objecting to motions to approve store closing and going out of business procedures; and filing lease rejection damage claims. 

Purchase and Sale of Distressed Debt; Acquisition of Assets in Bankruptcy

Steve also represents lenders, institutional investors, real estate funds and other companies in selling or purchasing commercial debt, whether an individual loan or loan portfolio. In addition, Steve advises clients in acquiring properties and other assets throughout all phases of the bankruptcy sale process: due diligence, title, asset sale agreements, submitting bids and attending auctions, sale hearings and closings.