• videocam Live Webinar with Live Q&A
  • calendar_month November 3, 2026 @ 1:00 PM ET/10:00 AM PT
  • signal_cellular_alt Intermediate
  • card_travel Bankruptcy
  • schedule 90 minutes

Enforcing Equity Pledges on the Brink of Bankruptcy: Evaluating Control Rights, UCC Sales, Strict Foreclosure

Strategic Considerations for Lenders

Early Bird Pricing!
MSRP
$297.00
$252.45
Save $44.55

Discount expires 10/20/26

This course is $0 with these passes:

CLE
ALL
  1. keyboard_arrow_leftBack

About the Course

Introduction

This CLE webinar will examine the trade-offs secured lenders must consider when deciding when and how to enforce their remedies under an equity pledge agreement and how those early choices may later affect their options or generate risks if bankruptcy is filed. The panel will also discuss determining when Chapter 11 is the best option.

Description

One core purpose of an equity pledge is to provide the lender with additional remedies and leverage over the ownership and control of a financially distressed borrower. Each remedy under the equity pledge requires careful evaluation and comes with its own set of imperfect consequences. Whether a lender attempts to exercise proxy rights, effect foreclosure via UCC 9-610, or arrange strict foreclosure under UCC 9-620, it must evaluate which risks are worth taking in light of the perceived benefits.

Much depends on how well crafted the equity pledge agreement is, a complex task requiring knowledge of applicable commercial and corporate law, intercreditor arrangements, the borrower's structure and governing documents, and more. One of the most intensely negotiated issues is how much pre-enforcement notice lenders must provide, which may affect timing and enforcement alternatives and require lenders to weigh speed and control against potential litigation over avoidable transfers, commercial reasonableness, or lender liability.

Listen as our panel of seasoned restructuring and bankruptcy attorneys discusses the choices that have to be made about timing, sequencing, and other details when lenders have the option of enforcing their remedies under equity pledge agreements. 

Presented By

Charles A. Dale
Partner
Proskauer Rose LLP
Michael R. Handler
Partner
King & Spalding LLP

Mr. Handler’s practice focuses on representing lenders and bondholders across the capital structure and companies in all aspects of workout, restructuring, special situation financing matters and distressed M&A transactions. He also has significant experience in connection with investment manager and broker-dealer liquidations and wind-downs, private credit restructurings and insolvency-related structured finance matters. Mr. Handler is at the forefront of intercreditor litigation and related issues, having led significant contested matters concerning the protection of minority lender rights in litigation in New York Supreme Court.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
George H. Singer
Partner
Holland & Hart

Mr. Singer is a trusted advisor to public and private companies, offering strategic counsel on complex corporate finance and commercial transactions to help clients structure, negotiate, and manage risk. He represents lenders, borrowers, administrative agents, private equity firms, and their portfolio companies in sophisticated debt and equity financings. Mr. Singer also advises clients on mergers, acquisitions, divestitures, and other strategic transactions, aligning legal strategy with their broader business goals.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Credit Information

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


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, November 3, 2026

  • schedule

    1:00 PM ET/10:00 AM PT

I. Equity Pledge and Governing Documents

A. What collateral is actually pledged

B. Economic, voting, governance, and management rights

C. Notice and enforcement conditions

D. Operating agreement and transfer restrictions

E. Intercreditor agreements

F. Bankruptcy and automatic stay considerations

II. Collateral Perfection

A. Article 8 opt-ins and characterization of the interest

B. Perfection by Filing

C. Perfection by Control/Possession

D. Priority Implications

III. Remedies: Key Considerations and Risks

A. Proxy rights, voting rights, and board flips

B. Sale (UCC § 9-610) / Credit bidding

C. Strict foreclosure (UCC § 9-620)

D. Valuation and commercial reasonableness

E. Foreclosing on equity versus assets

F. Becoming the Owner: Control, governance, and lender liability considerations

G. Challenges: avoidance, commercial reasonableness, valuation, lender liability

IV. Situations When Chapter 11 Is Best Option

A. Limits of Article 9 remedies

B. Going-concern and § 363 sale considerations

C. Multiple creditor constituencies and disputed claims

D. Executory contracts, leases, and operational restructuring

E. DIP financing and continued operations

F. Comparing cost, speed, finality, and litigation risk

The panel will review these and other significant issues:

  • What does a lender actually acquire under the pledge agreement?
  • What factors do lenders balance when weighing the speed of strict foreclosure with the post-transfer litigation risks?
  • Can borrower consents and releases signed before a sale prevent a commercially reasonable assessment?
  • What is the role of Article 8 opt-ins in enforcement of remedies?
  • When does enforcing equity pledge improve lender’s position—and when may a Chapter 11 filing provide more effective path to value?