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About the Course
Introduction
This CLE course will guide commercial lenders and their counsel on confronting a defaulted or troubled loan. The panel will discuss workout options and outline steps for lenders when anticipating a borrower's potential bankruptcy.
Description
The first indications of distress occur long before a company files for bankruptcy or even starts considering “strategic alternatives.” To maximize the recovery of distressed loans, lenders must get ahead of the curve by evaluating outstanding loans for the first sign of trouble and preparing pre-bankruptcy tactics to protect the lender's rights and interests.
Each borrower's circumstances are unique, so lenders can't formulate a uniform recovery strategy with all borrowers but our panel will review and discuss best practices for loan workouts when a potential bankruptcy looms.
Listen as our panel of finance attorneys explains steps commercial lenders should take when confronting a troubled loan and effective pre-bankruptcy planning strategies.
Presented By
Ms. Holl Chang advises clients in out-of-court restructurings, workouts and liability management transactions, Chapter 11 proceedings, enforcement actions, cross-border restructurings, and other reorganization proceedings. Her expertise includes intercreditor issues that arise in debt financing transactions and reorganizations, such as first/second lien loans, split-lien financings, mezzanine financings, unitranche structures and subordination agreements. Ms. Holl Chang regularly represents a wide variety of commercial banks, agent banks and lending syndicates, private credit lenders and other alternative credit providers, companies, indenture trustees and other parties-in-interest in all types of distressed situations.
Mr. Koenig helps clients win high-stakes disputes. He has vast experience in complex commercial bankruptcy, litigation, and trust matters and leads the bankruptcy and creditors’ rights practice at Koley Jessen, where he is a shareholder and member of the Executive Committee. A strategic thinker and pragmatic problem solver with a significant record of success, Mr. Koenig is the trusted bankruptcy and litigation counsel in proceedings throughout the country for multiple publicly traded companies, private equity firms, privately held businesses, and prominent individuals. In his commercial bankruptcy and financially distressed transactions practice, he counsels a variety of clients including creditors, debtors, bankruptcy trustees, creditor committees, and post-bankruptcy investors, to help them evaluate risks, minimize their exposure, maximize their recoveries, structure transactions, and cost-effectively resolve issues. A previous 40 under 40 honoree by the American Bankruptcy Institute, Mr. Koenig has been recognized as a “Super Lawyer” by Thomson Reuters and in The Best Lawyers in America® for commercial litigation and litigation - bankruptcy and by Chambers and Partners for his Bankruptcy/Restructuring work.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Live Online
On Demand
Date + Time
- event
Thursday, February 1, 2024
- schedule
1:00 p.m. ET./10:00 a.m. PT
- Triage for financially distressed companies: a secured lender's perspective
- Examine documentation and collateral perfection
- Audit inventory, accounts receivable, and equipment to determine borrowing base issues
- Review cash flow budgets and projections at least monthly
- Head in the sand
- Retention of experienced workout consultants
- Documenting a workout solution
- Obtain guarantees, letters of credit, other credit support
- Forbearance agreements
- Reservation of rights
- Resolving preference issues
- Pre-bankruptcy strategies
- Collateral sales options
- Alternatives of a debtor
- Actions in workouts that lead to potential preference issues
- Tight drafting of intercreditor agreements and agreements among lenders for enforcement in bankruptcy cases
- Relaxing financial covenants
- Avoiding "course of dealing" issues
The panel will review these and other key issues:
- What are a lender's options when dealing with a commercial borrower on the verge of default?
- What are some strategies and tactics lenders may employ pre-bankruptcy to maximize their recovery?
- How can lenders minimize liability concerns stemming from "course of dealing" issues?
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