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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

    Thursday, February 27, 2020

  • 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 provide bankruptcy attorneys with an analysis of trends and legal developments regarding various DIP financing terms and conditions. The panel will outline best practices for documenting post-petition financing and obtaining or contesting cash collateral and financing motions.

Faculty

John D. Elrod
Shareholder
Greenberg Traurig LLP

Mr. Elrod focuses his practice on bankruptcy, creditors' rights, and commercial litigation. He regularly represents secured lenders, indenture trustees, creditor committees, estate fiduciaries, and other parties in commercial bankruptcies, out of court restructurings, and litigation. John also has wide-ranging experience in litigation involving complex fraudulent transfers, corporate director and officer fiduciary duty claims, and public finance matters. He has broad experience in federal, state, and bankruptcy courts throughout the United States.   

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Erich N. Durlacher
Partner
Burr & Forman LLP

Mr. Durlacher practices in the firm's Creditors' Rights and Bankruptcy Practice Group assisting companies, banks, and other financial institutions in a variety of bankruptcy matters. He services clients in the resolution of complex commercial issues, the restructuring of performing and distressed credit facilities and swap agreements, and the maximization of debt and collateral recovery. Mr. Durlacher has extensive experience in the representation of companies, secured lenders, and other financial institutions in debt restructurings, workouts and forbearance agreements; the negotiation and closing of commercial loans; the prosecution of receivership and other judicial actions to protect, preserve, and recover collateral; and Chapter 11 bankruptcy cases.

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Description

DIP financing extends a lifeline to any business in Chapter 11, enabling it to maintain payroll and suppliers, stabilize operations, and restructure its balance sheet. But the use of cash collateral and DIP financing are often subject to an evolving list of conditions by lenders to limit the risks of post-petition financing.

Because post-petition lenders are given protection in the form of a senior lien position, pre-petition lenders often seek releases from the debtor regarding the validity, priority, and amount of the pre-petition claims as well as a release of defenses. Other standard financing terms include carve-outs, liens on avoidance actions, Section 506(c) waivers, and waiver of the automatic stay.

Bankruptcy courts vary in their treatment of financing conditions, and more closely scrutinize cash collateral and financing motions that involve financing by defensive lenders. Offensive lenders have more leverage with the borrower regarding financing terms and receive less scrutiny by courts.

Listen as our authoritative panel of bankruptcy practitioners offers guidance through the post-petition financing process and discusses emerging financing terms and conditions in the current credit markets.

Outline

  1. Evaluating finance terms in current market environment
  2. Documenting the financing arrangement
  3. Obtaining bankruptcy court approval of cash collateral and financing motions

Benefits

The panel will review these and other vital questions:

  • What must counsel consider in evaluating defensive versus offensive DIP lenders?
  • What challenges does a debtor face in seeking an order to use cash collateral?
  • How do bankruptcy courts treat releases of pre-petition secured lenders?
  • What are the current trends concerning roll-up financing and cross-collateralization?
  • What are the best practices for documenting DIP financing to obtain approval by the courts?