Cross-Collateralization Clauses in Bankruptcy: Enforcement Challenges for Lenders
Resolving Lender Priority Disputes and Protecting Collateral in the Face of Dragnet Clauses
Recording of a 90-minute CLE webinar with Q&A
This CLE course will discuss the enforceability of cross-collateralization clauses in bankruptcy, recent case law regarding lender priority disputes and bankruptcy financing, and best practices for secured creditors to protect their priority in the event of the borrower's bankruptcy.
Outline
- Cross-collateralization of mortgages
- Cross-collateralization of non-mortgage loans
- Best practices for senior lenders in enforcing cross-collateralization provisions
- Best practices for junior or second lien lenders to protect their priority
Benefits
The panel will review these and other key questions:
- What steps can senior lenders take to maximize the effectiveness of a cross-collateralization provision in the senior loan?
- What steps can junior lenders take to avoid being squeezed out by the cross-collateralization clause of the senior lender’s lien?
- How have courts treated cross-collateralization in debtor-in-possession financing and what factors should lenders be cognizant of when incorporating these provisions in DIP deals?
Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.
Faculty
Mark A. Bogdanowicz
Atty
Howard & Howard
Mr. Bogdanowicz concentrates his practice in the areas of business and corporate and commercial litigation, with an... | Read More
Mr. Bogdanowicz concentrates his practice in the areas of business and corporate and commercial litigation, with an emphasis on bankruptcy and creditors' rights. He has represented both secured and unsecured creditors (including landlords, trade creditors and utilities) in all aspects of chapter 11 cases and has specific experience involving the intersection of bankruptcy and creditors' rights law with employee benefits law.
CloseRichard A. Chesley
Partner
DLA Piper LLP (US)
Mr. Chesley practices in the areas of corporate restructuring, with an emphasis on bankruptcy transactions both in the... | Read More
Mr. Chesley practices in the areas of corporate restructuring, with an emphasis on bankruptcy transactions both in the U.S. and internationally. He has served as restructuring counsel in a number of Chapter 11 proceedings and has led numerous out-of-court restructurings. In addition, Mr. Chesley has served as counsel to official creditors' committees and has represented a number of other constituencies in bankruptcy proceedings, including financial advisors, real estate acquirors, liquidators and other significant creditors.
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