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Commercial Loan Workouts: Forbearance Options and Waivers After Default

Crafting Forbearance Agreements and Correcting Loan Deficiencies to Strengthen the Lender's Position

Recording of a 90-minute CLE webinar/teleconference with Q&A

Conducted on Thursday, April 1, 2010
Recorded event now available

This CLE webinar will provide guidance to lender's counsel for crafting and negotiating a commercial loan workout to strengthen the lender's claims and minimize risk and liabilities due to a borrower's bankruptcy or foreclosure.

Description

A loan workout provides a lender the chance to strengthen its position and minimize its risk due to the borrower’s bankruptcy or a foreclosure sale. Waiver and forbearance agreements give the lender an opportunity to correct deficiencies in existing terms, documentation or collateral.

Well-crafted provisions of the forbearance agreement or waiver are essential to protecting a lender’s position. However, the lender must also be cognizant of the risks it faces in the event of the borrower’s bankruptcy or the need for foreclosure—and take action to minimize these risks.

Listen as our authoritative panel of workout attorneys discusses best practices for crafting forbearance and waiver agreements and steps to minimize the lender's risks due to the borrower's bankruptcy or foreclosure.

Outline

Correcting deficiencies in loan documentation and collateral
1. Updated UCC Searches
2. Special collateral perfection examination
3. Tax and judgment lien search
4. Additional collateral
5. Guarantees
6. Landlord waivers
7. Deposit control agreements
8. Intercreditor agreements
Drafting the forbearance or waiver agreement
1. Waiver of existing defaults
2. Borrower representations and warranties
3. Strict compliance with loan documents
4. Expiration date and early termination
5. Fees
6. Ratification of obligations
7. Confirmation of liens and security interests
8. Release of claims
9. Post-default waivers
Minimizing bankruptcy and foreclosure risks
1. Fraudulent conveyance
2. Preference actions
3. Lender liability
4. UCC foreclosures

Benefits

The panel will review these and other key questions:

What is the difference between forbearance and waiver — and which option is best for the lender?
What steps can the lender take during a loan workout to strengthen its position and minimize its risks in bankruptcy or foreclosure sale?
What critical provisions must be contained in the forbearance or waiver agreement?
How do the bankruptcy concepts of fraudulent transfer and preference action impact the lenders post-default actions?

Faculty

Elizabeth M. Bohn, Partner
Jorden Burt, Miami, Fla.

She is a trial attorney who practice focus includes complex commercial litigation, creditors' rights and bankruptcy. She has over 20 years' experience representing banks, finance companies, lenders and other corporate clients in state, federal and bankruptcy court litigation.

Matthew T. Gensburg, Shareholder
Greenberg Traurig, Chicago

He is an experienced commercial litigator representing secured and unsecured lenders, landlords, creditors' committees and debtors in all phases of corporate reorganizations and debt restructuring. He is a member of the American Bankruptcy Institute and a past instructor at the American Bankers Association's National Commercial Lending School and Commercial Lending Graduate School.

Craig S. Unterberg, Partner
Haynes & Boone, New York

He concentrates his practice in the areas of representing borrowers and lenders in secured and unsecured lending and structured finance transactions, including margin stock lending, private equity and hedge fund financing, syndicated financings, mergers and acquisition financings, and distressed debt transactions. In addition, he provides extensive regulatory advice on margin lending issues.

Ordering

Online CLE

Includes audio streaming of full program plus handouts (available 24 hours after live seminar).

CLE: Pre-approved for participatory or non-traditional/alternate format credit in: CA, HI*, NY*, WV*. Pre-approved for self-study credit in: AK, AZ, MO, MT, TX, VT, WA.
Upon request, also available in: CO, CT*, FL, GA, ID, KY, LA, ME, NC, ND, NE, NH, NM, NV, OR*, SC, TN, UT, WI*, WY. If you are applying for credit in one of these states, make sure to select those states when placing your order.
(*Indicates that Strafford must report attendance.)

Online CLE Audio $148.50
Available 24 hours after the live event