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
- Strategic decisions regarding credit bids
- Amount of bid
- Timing of bid
- Secured v. undersecured claims
- Bidding for assets in addition to lender’s collateral
- Resolving disputes
- Collective action in syndicated loan facilities
- Intercreditor disputes—second lien holders
- Negotiations with committees of unsecured creditors
- Challenges to right to credit bid
- RadLAX Gateway Hotel, LLC v. Amalgamated Bank
- Denial of right to credit bid “for cause”
- 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
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
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
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.
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.
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
Bankruptcy Law Advisory Board
Partner
Nixon Peabody
Partner
Potter Anderson & Corroon
Of Counsel
Haynes & Boone
Shareholder
Greenberg Traurig
Partner
Dechert
Shareholder
Vedder Price
Partner
Nixon Peabody
Partner
Edwards Wildman Palmer
Partner
Kaye Scholer
Counsel
Skadden Arps Slate Meagher & Flom
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