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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

    Wednesday, October 30, 2024

  • 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.

$347.00
CLE
ALL

This CLE course will provide counsel with an overview and discussion of the unique aspects of unitranche loan facilities and the interplay of those aspects in restructuring and working out of a troubled loan.

Faculty

Weston T. Eguchi
Partner
Parent: Willkie Farr & Gallagher Llp

Mr. Eguchi is a partner in the Corporate & Financial Services Department and a member of the Finance Department. He has represented hedge funds, banks, financial institutions and other parties in connection with chapter 11 and 15 commercial bankruptcy cases, out-of-court workouts, distressed asset sales and financing transactions. Mr. Eguchi regularly advises buy and sell-side firms on investments in distressed and stressed credits. He also has substantial experience related to cross-border insolvencies, derivatives and other “safe harbor” financial contracts, structured finance transactions and pensions-related issues.

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Ana Alfonso
Partner
O'Melveny & Myers LLP

Ms. Alfonso is a partner in O’Melveny’s Restructuring Practice. Known best for her work on behalf of secured lenders, she has represented agents, bank groups, ad hoc groups, bilateral credit providers, hedge counterparties, and other creditors as parties to financial restructurings, insolvency proceedings, enforcement actions, and litigation. She regularly helps clients formulate risk management strategies throughout the life cycle of their most complex financial transactions, often from the initial drafting stage. Ms. Alfonso has experience across a wide range of industries and has worked extensively on distressed situations arising in the areas of oil and gas, power, renewable energy, commodities trading, insurance, and reinsurance.

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Brian Stern
Partner
O'Melveny & Myers LLP

Mr. Stern’s practice focuses on representing borrowers (including portfolio companies), issuers, agents, and lenders in structuring and documenting secured and unsecured financing transactions, including direct lending, cash flow, asset based, mezzanine, bridge, bankruptcy (including DIP and exit facilities), and subscription line financing transactions. His recent experience includes representing lenders, agents and borrowers in acquisition financing in various industries such as technology, health care, and retail, as well as restructuring transactions for borrowers, lenders, and agents in the technology, health care, retail, and oil and gas industries.

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Description

A unitranche loan facility begins with the same loan documentation as in any other senior loan facility. There is one agented loan agreement and there is one lien grant in favor of the agent. Making the unitranche loan facility unique from the documentation for a typical senior loan facility is an additional document called an agreement among lenders (AAL).

The AAL sets forth the inter-lender agreements among the lenders in a unitranche loan facility. Those agreements go beyond addressing the remedies, standstill periods, and the bankruptcy-related rights found in a typical first lien/second lien intercreditor arrangement.

The scope of these agreements in an AAL will impact the inter-lender dynamic in restructuring and working out of a troubled loan.

Listen as our authoritative panel of finance and bankruptcy practitioners discusses the differences between an AAL and other intercreditor agreements and how the unique aspects of an AAL may affect the restructuring and working out of a troubled loan.

Outline

  1. Unique inter-lender issues to a unitranche loan facility
  2. Power to consent to restructuring a unitranche loan facility
  3. Right to exercise remedies before the commencement of a bankruptcy proceeding
  4. Rights of first-out lenders to stop the exercise of remedies
  5. Rights of last-out lenders to stop the exercise of remedies
  6. Consequences that may result from an exercise of remedies
  7. Rights of last-out lender following the commencement of a bankruptcy proceeding
  8. Pitfalls and opportunities for first-out lenders and last-out lenders in connection with financing a bankruptcy proceeding
  9. Rights of first-out lenders and last-out lenders concerning 363 sales in a bankruptcy proceeding
  10. Pitfalls and opportunities for first-out lenders and last-out lenders in plan classification and voting disputes
  11. Rights of first-out lenders and last-out lenders concerning reorganization securities
  12. Pitfalls and opportunities for first-out lenders and last-out lenders in a cramdown plan and the potential impact on state law causes of action to enforce the AAL

Benefits

The panel will review these and other key issues:

  • What are the unique aspects of unitranche loan facilities, and what is the interplay of those aspects in restructuring and working out of a troubled loan?
  • How does the AAL impact the rights of first-out and last-out lenders to exercise remedies outside of bankruptcy?
  • What are the respective rights of first-out and last-out lenders in the context of a bankruptcy proceeding?