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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Bankruptcy

Date & Time
  • event Date

    Wednesday, May 10, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$297.00
CLE
ALL

This CLE course will discuss challenging issues in debtor-in-possession (DIP) financing that are most often the subject of contentious negotiations between DIP lenders and other secured creditors, as well as the subject of intense scrutiny by bankruptcy judges.

Faculty

John Henry Knight
Director
Richards, Layton & Finger P.A.

Mr. Knight represents debtors, prepetition and DIP lenders, purchasers, and other parties in interest in Delaware chapter 11 cases. He is “professional, smart, responsive, and keenly aware of the issues and problems confronting his clients.” Clients report that “his astute perspective on each bankruptcy judge’s tendencies, past rulings, and hot buttons is invaluable” (Chambers USA).

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Eric W. Anderson
Partner
Parker, Hudson, Rainer & Dobbs LLP

Mr. Anderson concentrates his practice in bankruptcy, workouts, financial restructuring and commercial finance. He regularly represents banks, financial institutions, secured asset-based lenders, investors, trustees, debtors-in-possession, and other parties in bankruptcy and financial restructuring matters. This includes representation in workouts and restructuring matters both in and out of bankruptcy.

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Description

DIP financing is often subject to an evolving list of conditions by lenders to limit the risks of post-petition financing. Challenging terms include roll-overs and roll-ups, cross-collateralization, priming liens, and super-priority claims on avoidance actions. Pre-petition lenders often seek releases from the debtor regarding the validity, priority, and amount of the pre-petition claims and a release of defenses. Other terms include carve-outs, liens on avoidance actions, Section 506(c) waivers, and waiver of the automatic stay.

This panel will also discuss the seemingly ever-present issues relating to the relative rights of senior creditors vs. junior creditors, including the evolution of case law addressing the enforceability and the impact of intercreditor agreement provisions that make it difficult for junior secured creditors to offer competing DIP financing. Courts are mindful of secured creditor overreach and may be more willing to question lender demands.

Listen as our authoritative panel of bankruptcy practitioners offers guidance on these issues, takes a look at current case law, and provides practice tips for counsel that represent DIP lenders, other secured lenders, and debtors.

Outline

  1. Rollover of pre-petition secured debt
  2. Cross-collateralization
  3. Priming liens
  4. Liens or super-priority claims on avoidance actions
  5. Releases and waivers of challenges to liens and other future borrowings
  6. Section 506(c) waivers
  7. Junior DIP financing
  8. "Carve-out" for professional fees

Benefits

The panel will review these and other key issues:

  • What must counsel consider in evaluating defensive vs. offensive DIP loans?
  • How does the debtor seeking a priming lien convince the existing lender to consent or convince the court that the current lender's lien is adequately protected?
  • How do bankruptcy courts treat releases of pre-petition secured lenders?