Cross-Collateral/Cross-Default Loans: Structuring and Documenting Transactions
Intercreditor Agreements, Priority Disputes, Enforcement Challenges Post-Default or Bankruptcy
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will instruct finance counsel on structuring and documenting cross-collateral/cross-default first and second lien financing transactions. The panel will discuss best practices for negotiating intercreditor agreements to protect the rights of both primary and secondary lien lenders and minimize priority disputes, and how to safeguard liens in the event of borrower default or bankruptcy.
Outline
- Structuring and documenting cross-collateralization and cross-default loans
- Key provisions of the intercreditor agreement
- Definition of common collateral
- Standstill periods
- Structuring indebtedness caps
- "Free release" and drag along with lien release
- Purchase options
- Rights as an unsecured creditor
- Insolvency provisions
- Enforceability of cross-collateral provisions after default
- Enforceability of cross-collateral provisions in bankruptcy
Benefits
The panel will review these and other key issues:
- Best practices for senior lenders to maximize the effectiveness of a cross-collateral/cross-default provision in the senior loan
- How can junior lenders avoid being squeezed out by cross-collateralization in the senior lender's lien?
- Negotiating the intercreditor agreement to minimize lender priority disputes
Faculty
Dr. Alison R. Manzer
Partner
Cassels Brock & Blackwell
Ms. Manzer is a member of the Firm's Financial Services Group. Her practice encompasses a broad range of commercial... | Read More
Ms. Manzer is a member of the Firm's Financial Services Group. Her practice encompasses a broad range of commercial practice in the financial services sector, including financial institution regulation, corporate and commercial lending, asset-based financing, securitization and structured finance, private equity, project finance, asset finance and leasing, business reorganization, syndicated lending and related areas. A significant part of her practice involves multi-jurisdiction transactions where she has expertise in the structuring requirements of financing, investment and securitization transactions to solve taxation, conflicts of laws, document structure, currency and rate issues, among others.
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James C. Schulwolf
Partner
Shipman & Goodwin
Mr. Schulwolf is a partner in Shipman's Business and Corporate Practice Group. He focuses his practice on... | Read More
Mr. Schulwolf is a partner in Shipman's Business and Corporate Practice Group. He focuses his practice on advising clients in financing, investment, acquisition, and restructuring transactions. In the Finance sector, Mr. Schulwolf regularly represents financial institutions including banks, mezzanine funds, and other institutional investors in structuring, documenting, and closing complex senior and mezzanine financings, including mezzanine financings with equity co-investments. He regularly represents lenders in connection with acquisition financings, financing of alternative energy projects (including wind, solar, and fuel cell projects), asset-based loans, cash flow loans, and syndicated credit facilities and he also represents Shipman's corporate clients and private equity portfolio companies in their financing transactions.
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Jeffrey A. Wurst
Partner
Ruskin Moscou Faltischek
Mr. Wurst is the chairman of the firm’s Financial Services, Banking, & Bankruptcy Department. He has... | Read More
Mr. Wurst is the chairman of the firm’s Financial Services, Banking, & Bankruptcy Department. He has significant expertise in asset-based lending, factoring, and all other areas of commercial finance, bankruptcy matters, workouts and turnaround situations. He is actively involved in the documentation of commercial finance and leasing transactions, as well as litigation that may arise out of or in connection with such transactions.
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