Credit Bidding in Bankruptcy Sales: Critical Issues Facing Lenders

Asserting and Defending Against Credit Bids, Resolving Intercreditor Disputes, and Taking Collective Action Under Syndicated Facilities

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


Conducted on Tuesday, July 24, 2012
Recorded event now available


This CLE webinar will provide bankruptcy counsel with a review of strategic decision making in credit bidding, resolving the myriad of disputes among lenders and unsecured creditors, and overcoming legal challenges to the lender's right to credit bid.

Description

Credit bidding can be a powerful tool for the secured lender but presents a number of challenges and pitfalls to navigate and overcome. However, the Supreme Court’s RadLAX Gateway Hotel ruling provides some certainty for lenders credit bidding in a sale under Section 1129(b)(2)(A).

Lender disputes in syndicated credit facilities are common. Recent case law addresses disputes between majority and minority lenders regarding consent to credit bid and the authority of the syndicate’s agent to bind all lenders.

Intercreditor disputes are another hurdle that have only recently been tested in bankruptcy litigation.

Listen as our authoritative panel of bankruptcy practitioners discusses critical issues facing lenders in credit bidding in bankruptcy and offers best practices to protect the lenders' bid and resolve various disputes in the process.

Outline

  1. Strategic decisions regarding credit bids
    1. Amount of bid
    2. Timing of bid
    3. Secured v. undersecured claims
    4. Bidding for assets in addition to lender’s collateral
  2. Resolving disputes
    1. Collective action in syndicated loan facilities
    2. Intercreditor disputes—second lien holders
    3. Negotiations with committees of unsecured creditors
  3. Challenges to right to credit bid
    1. RadLAX Gateway Hotel, LLC v. Amalgamated Bank
    2. Denial of right to credit bid “for cause”
    3. Equitable subordination of lien—loss of lender’s priority

Benefits

The panel will review these and other key questions:

  • What issues arise when the lender bids for a basket of assets that includes assets of value in addition to the lender's collateral?
  • What rights do minority lenders in a syndicated loan facility have to block the agent from credit bidding?
  • What are the trends in enforcing intercreditor agreements in bankruptcy?

Faculty

Amy A. Zuccarello, Counsel
Sullivan & Worcester, Boston

She practices in the areas of business restructuring, workout and bankruptcy and represents creditors, including indenture trustees, lenders and landlords in complex debt restructurings and insolvency matters. She also has extensive experience in structuring and conducting UCC (Article 9) foreclosure sales, with respect to a variety of collateral types.

Benjamin D. Feder, Special Counsel
Kelley Drye & Warren, New York

He focuses his practice on bankruptcy and restructuring matters and represents bank lenders, debtors, bondholders, creditors' committees and other parties in all phases of Chapter 11, U.S. and foreign workouts and out-of-court restructurings. His practice often has centered on representing secured and unsecured pre-petition bank lenders, DIP financing lenders and purchasers of troubled companies.

Ordering

Online CLE - Audio Recording

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

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 $297.00
Available 24 hours after the live event

How does this work?


Recorded Event

Includes full event recording plus handouts (available after live seminar).

CLE: Pre-approved for self-study credit in: AK, AZ, CA, CT, HI, MO, MT, NY, TX*, VT, WA, WV. Upon request, self-study credit is also available in: CO, FL, GA, ID*, KY, ME, ND, NE, NH, NM, NV, OR, UT, WI, WY. If you are applying for self-study credit in one of these states, contact Strafford CLE at 1-800-926-7926 ext. 35 or CLE@straffordpub.com. (*Indicates that Strafford needs to process the CLE — see below to purchase this option.)

Webinar Download (Slide Presentation with Audio) $297.00
Available three business days after the live event

How does this work?

DVD (Slide Presentation with Audio) $297.00 plus $9.45 S&H
Available ten business days after the live event

MP3 Download (Audio with Slide PDFs) $297.00
Available 24 hours after the live event

How does this work?

CD (Audio with Slide PDFs) $297.00 plus $9.45 S&H
Available ten business days after the live event

Webinar/Teleconference

Strafford webinars/teleconferences offer several options for participation: online viewing of speaker-controlled PowerPoint presentations with audio via computer speakers or via phone; or audio only via telephone (download speaker handouts prior to the program).  Please note that our webinars do not feature videos of the presenters.

Program Materials

Requires Adobe Reader 8 or later. Download Acrobat FREE.

Program Materials

Requires Adobe Reader 8 or later. Download Acrobat FREE.

or call 1-800-926-7926

CLE Credit

Strafford's live seminars qualify for CLE in every state that accredits webinars. They offer you a high quality, cost effective, and convenient CLE option, with no lost travel time or expenses.

More Details >

or call 1-800-926-7926

Customer Reviews

The webinar was informative on the current issues.

Lauren Bernstein

Kaye Scholer

I thought the speakers were very well versed.

Richard A. Graham

White & Case

I thought that the speakers offered valuable practical insights on the subject of credit bidding.

Allison Rego

Baker & McKenzie

I thought the program was excellent.

Michelle Rice

Arkin Kaplan Rice

The program was very thorough, stayed on topic and was well organized.

Thad Wilson

King & Spalding

or call 1-800-926-7926

Bankruptcy Law Advisory Board

Mark N. Berman

Partner

Nixon Peabody

Theresa V. Brown-Edwards

Partner

Potter Anderson & Corroon

Michael Foreman

Of Counsel

Haynes & Boone

Matthew Gensburg

Shareholder

Greenberg Traurig

Brian E. Greer

Partner

Dechert

Douglas Lipke

Shareholder

Vedder Price

Victor Milione

Partner

Nixon Peabody

Steven B. Smith

Partner

Edwards Wildman Palmer

Michael Solow

Partner

Kaye Scholer

Robert A. Weber

Counsel

Skadden Arps Slate Meagher & Flom

or call 1-800-926-7926

Our Guarantee

Strafford webinars and teleconferences are backed by our 100% Unconditional Money-Back Guarantee: if you are not satisfied with any of our products, simply let us know and get a full refund. For more information regarding complaints and refunds, please contact us at 1-800-926-7926 ext 10.