Default Interest, Late Fees and Prepayment Premiums: Drafting and Enforcement
Hot Button Issues for Lenders on Acceleration, Enforceability in Bankruptcy, Lessons From Recent Case Law
Recording of a 90-minute premium CLE webinar with Q&A
This CLE webinar will examine loan provisions that can become critically important in an event of default, including notice and cure, acceleration, default interest, late fees, and prepayment or "make-whole" premiums. The panel will also discuss pitfalls to avoid in enforcement of these provisions and their treatment in bankruptcy as informed by recent case law.
- Default provisions
- Notice and cure, grace periods, acceleration
- The distinction between a "default" and an "event of default"
- Monetary vs. non-monetary defaults
- Default interest and last fees
- Prepayment or make-whole premiums
- Treatment in bankruptcy
- Recent case law
The panel will review these and other critical issues:
- How do notice and cure provisions vary for monetary and non-monetary defaults?
- From the lender's standpoint, what should the documents say about prepayment premiums in the event of an acceleration of the loan?
- What are some pitfalls to avoid in exercising remedies after default? After acceleration?
- How have the courts looked at default interest, late fees, and prepayment premiums in bankruptcy?
Christine A. Okike
Skadden Arps Slate Meagher & Flom
Ms. Okike represents debtors, creditors, equity holders, investors, sellers, purchasers and other parties-in-interest... | Read More
Ms. Okike represents debtors, creditors, equity holders, investors, sellers, purchasers and other parties-in-interest in all stages of complex restructuring transactions, including prepackaged, prearranged and traditional Chapter 11 cases, out-of-court workouts, distressed acquisitions and cross-border proceedings.Close
Eric E. Walker
Mr. Walker focuses his practice on all aspects of commercial litigation, financial restructuring and bankruptcy,... | Read More
Mr. Walker focuses his practice on all aspects of commercial litigation, financial restructuring and bankruptcy, including experience representing debtors, creditors, asset purchasers, examiners and trustees in bankruptcy proceedings throughout the country. He has significant experience in the hotel and hospitality industry, regularly representing hotel owners, developers, operators, lenders and major hotel brands in transactions, state and federal litigation and bankruptcy.Close