Troubled Debt Restructuring (TDR)
GPA Capital has a proven record of returning TDRs to Accrual status with minimal impact.
Agencies want institutions to work with borrowers and consider prudent loan changes, making this an excellent time for us to help lessen the risk.
A modified TDR loan not in accrual status doesn't have to stay that way but can return to accrual if it meets Call Report guidelines.
When the primary method of repayment for a TDR loan relies on selling or managing the underlying collateral, its value is tied to that collateral. However, if the ability to repay a troubled loan secured by property relies on business income or other sources instead of the property itself, the loan is typically not deemed collateral dependent. This is where we come in. Our team of engaged managers is working with the market, operations, and management to re-establish stability.
We've shown success by collaborating with institutions to leverage potential charge-offs, realizing amortized liquidation and boosting profits after risk reduction.