• videocam On-Demand Webinar
  • signal_cellular_alt Intermediate
  • card_travel Bankruptcy
  • schedule 90 minutes

Pre-Bankruptcy Planning for Troubled Lending Facilities: Workout Strategies for Maximizing Recovery

$297.00

This course is $0 with these passes:

CLE
ALL
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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.

Credit Information

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


  • Live Online


    On Demand

Date + Time

  • event

    Thursday, February 1, 2024

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

  1. Triage for financially distressed companies: a secured lender's perspective
    1. Examine documentation and collateral perfection
    2. Audit inventory, accounts receivable, and equipment to determine borrowing base issues
    3. Review cash flow budgets and projections at least monthly
    4. Head in the sand
    5. Retention of experienced workout consultants
  2. Documenting a workout solution
    1. Obtain guarantees, letters of credit, other credit support
    2. Forbearance agreements
    3. Reservation of rights
    4. Resolving preference issues
  3. Pre-bankruptcy strategies
    1. Collateral sales options
    2. Alternatives of a debtor
    3. Actions in workouts that lead to potential preference issues
    4. Tight drafting of intercreditor agreements and agreements among lenders for enforcement in bankruptcy cases
    5. Relaxing financial covenants
    6. 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?