- videocam Live Online with Live Q&A
- calendar_month October 14, 2025 @ 1:00 p.m. ET./10:00 a.m. PT
- signal_cellular_alt Intermediate
- card_travel Bankruptcy
- schedule 90 minutes
Structuring Forbearance Agreements and Strengthening Lender Collateral Position
Deferral of Existing Defaults, Borrower R and W, Confirmation of Liens, Ratification of Obligations, Releases, Prejudgment Remedies
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Description
Forbearance agreements are essential to protecting a lender's position when the loan is in default or in danger of going into default. Counsel representing lenders must anticipate and successfully navigate obstacles during the negotiation process and avoid pitfalls that might give rise to lender liability challenges by borrowers.
A loan forbearance provides a lender the chance to strengthen its position and minimize risk due to the borrower's bankruptcy or a foreclosure sale. Forbearance agreements also allow the lender to correct deficiencies in existing terms, documentation, or collateral.
Should the borrower file bankruptcy, the forbearance agreement will be reviewed by third parties, such as a court, a trustee, a creditors' committee, or others who may wish to challenge it. Thus, in any forbearance situation, counsel must structure and document the forbearance with bankruptcy considerations in mind. Waivers of the automatic stay by the borrower and stipulations supporting relief in a bankruptcy filing are critical.
Listen as our authoritative panel of attorneys discusses best practices for crafting forbearance agreements that minimize lender risks and liabilities. The panel will also address steps lenders can take during the workout process to correct deficiencies in existing terms, documentation, or collateral.
Presented By

For the past 35 years, Mr. Hesse has focused his practice on searching for pragmatic solutions to complex problems in the context of restructuring, insolvency, and bankruptcy. He represents borrowers, debtors, secured creditors, trade creditors, contract counterparties, unsecured creditors’ committees, equity holders, and trustees on all sides of insolvency situations, with an emphasis on representing creditors of all types. Although Mr. Hesse's practice is industry agnostic, adapting to fluctuations in the business cycle, his matters often occur within the retail and consumer products, real estate, and consumer finance industries. In addition to his bankruptcy practice, Mr. Hesse advises financial services clients on consumer protection compliance and litigation.

Mr. Samuelson handles commercial real estate and technology transactions, business bankruptcies, and related litigation. He combines practice areas to restructure distressed commercial real estate and LLCs, including workouts, recapitalizations, bankruptcies, sale-leasebacks, “business divorces” and other types of business break-ups and dissolutions, including handling any litigation associated therewith. Mr. Samuelson’s real estate and bankruptcy work includes (a) in the good times – acquisitions, joint development agreements and easements, leases (including air rights, ground, interior space, tower, rooftop, and governmental leases), subleases and licenses, and financing structures; and (b) in the bad times – business or commercial workouts, foreclosures, landlord/tenant renegotiations and evictions, bankruptcies (including single asset real estate, small business reorganization act, Subchapter V, and other Chapter 11’s), financial restructurings (such as sale-leasebacks), and LLC member disputes. Its clients are primarily real estate developers, small businesses (including franchisees), investors, non-profits, embassies and commercial real estate lenders.
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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
Tuesday, October 14, 2025
- schedule
1:00 p.m. ET./10:00 a.m. PT
Outline
I. Correcting loan documentation deficiencies and strengthening collateral position
A. Updated UCC searches
B. Loan document review
C. Special collateral perfection examination
D. Tax and judgment lien search
E. Additional collateral
F. Guarantees
II. Drafting the forbearance agreement
A. Waiver of existing defaults
B. Borrower representations and warranties
C. Strict compliance with loan documents
D. The expiration date and early termination
E. Fees
F. Ratification of obligations
G. Confirmation of liens and security interests
H. Agreements to prejudgment remedies, such as receivership
I. Release of claims
J. Other lender protections
Benefits
The panel will review these and other high priority issues:
- What are the critical provisions in the forbearance agreement?
- What unique risks does the borrower's bankruptcy pose and how can counsel minimize these risks in crafting the forbearance agreement?
- What steps can the lender take during a loan workout to strengthen its position and minimize its bankruptcy or foreclosure sale risks?
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