Chapter 11: Options for Reinstating Accelerated Debt After a Monetary Default
Lender Strategies to Avoid Being Sidelined During Confirmation; Debtor Strategies for Keeping Low Interest Loans
Recording of a 90-minute CLE video webinar with Q&A
This CLE webinar will discuss whether and how Chapter 11 debtors can reinstate attractive loans, even those accelerated pre-petition, while at the same time preventing the lender from objecting to confirmation. The panel will review debtor and lender positions regarding what has to be done, how to determine the cost of reinstatement, timing, and payment as well as disparate views on a similar question of whether an unsecured claim is "unimpaired" by a plan if the claim's treatment does not include post-petition interest.
Outline
- Secured loans
- Benefits of reinstatement to debtors
- Lender opposition to reinstatement
- Statutory basis for reinstatement in plan of reorganization
- Harmonizing the relevant Bankruptcy Code provisions
- Current cases
- Unresolved issues
- Unsecured loans and post-petition interest
Benefits
The panel will review these and other key issues:
- What defaults must be reinstated in order to "unimpair" a secured creditor?
- Do Sections 1124(2)(A) and 365(b)(2)(D) create an exception to Section 1123(d)?
- What types of unique state law considerations affect the analysis?
- Can default interest and fees be challenged as an unenforceable penalty?
Faculty
Adam P. Haberkorn
Counsel
O'Melveny & Myers
Mr. Haberkorn is a corporate counsel in O’Melveny’s New York office who focuses his practice on advising... | Read More
Mr. Haberkorn is a corporate counsel in O’Melveny’s New York office who focuses his practice on advising clients in in-court and out-of-court restructurings and in executing complicated financing transactions. He has extensive experience in corporate bankruptcy-related matters, and has represented debtors, creditors, lenders, purchasers, and other parties-in-interest in a wide variety of industries.
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Daniel S. Shamah
Partner
O'Melveny & Myers
Mr. Shamah is a premier restructuring lawyer who is universally lauded by peers and clients for his expertise in... | Read More
Mr. Shamah is a premier restructuring lawyer who is universally lauded by peers and clients for his expertise in complex restructuring and insolvency matters. Not only is he adept at conventional bankruptcy and restructuring proceedings, he is also an experienced litigator and handles disputes surrounding some of the most complex commercial and financial instruments across a broad range of industries and practices. Because of Mr. Shamah’s creative approach and exceptional knowledge base, leading financial institutions, private equity sponsors, hedge funds and public and private companies call on him to help them navigate a host of bankruptcy and restructuring issues. From lender liability and fraudulent conveyances to distressed debt investments and complex commercial litigation, he has achieved successes for his clients in every type of restructuring scenario—and his track record proves it.
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