Several factors helped to pull off the first restructuring of a large, European CMBS loan this cycle: strong borrowers with a good asset management plan; some subordinated debt holders prepared to risk good money after bad; and others prepared to negotiate to cut their losses.
Besides all this pragmatism, the servicer to Germany’s Opera 2 CMBS, Eurohypo, played a vital role. It was mandated to act for the senior lender and ultimately the note holders in the CMBS. Instead of delaying, or worrying about being sued, the servicer took the clear view that the best option for the senior loan was restructuring; the alternative, foreclosure and sales, would have led to huge losses.
When the market moves against you, having decent assets, decent sponsors and a well-structured deal helps. Add a servicer prepared to act and this is how the market is supposed to work.