DIP Financing: Structuring Roll-Overs, Cross-Collateralization, Priming Liens, Junior DIP Financing, and More

A live 90-minute CLE webinar with interactive Q&A


Thursday, October 29, 2020

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, October 2, 2020

or call 1-800-926-7926

This CLE webinar will discuss challenging issues in debtor-in-possession (DIP) financing that are most often the subject of contentious negotiations between DIP lenders and other secured creditors, as well as the subject of intense scrutiny by bankruptcy judges.

Description

DIP financing is often subject to an evolving list of conditions by lenders to limit the risks of post-petition financing. Challenging terms include roll-overs and roll-ups, cross-collateralization, priming liens, and super-priority claims on avoidance actions. Pre-petition lenders often seek releases from the debtor regarding the validity, priority and amount of the pre-petition claims, and a release of defenses. Other terms include carve-outs, liens on avoidance actions, Section 506(c) waivers, and waiver of the automatic stay.

One of the ABI Commission's proposals for Chapter 11 reform seeks to reduce the level of control secured lenders have in Chapter 11 cases and give more power to debtors and junior creditors, including possibly limiting the impact of inter-creditor agreement provisions that make it difficult for junior secured creditors to offer competing DIP financing. Courts, therefore, are more mindful of secured creditor overreach and more willing to question lender demands.

Listen as our authoritative panel of bankruptcy practitioners offers guidance on these issues, takes a look at current case law, and provides practice tips for counsel that represent DIP lenders, other secured lenders, and debtors.

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Outline

  1. Rollover of pre-petition secured debt
  2. Cross-collateralization
  3. Priming liens
  4. Liens or super-priority claims on avoidance actions
  5. Releases and waivers of challenges to liens and other future borrowings
  6. Section 506(c) waivers
  7. Junior DIP financing
  8. "Carve-out" for professional fees
  9. ABI Commission recommendations for reforms impacting DIP financing

Benefits

The panel will review these and other key issues:

  • What must counsel consider in evaluating defensive vs. offensive DIP lenders?
  • How does the debtor seeking a priming lien convince the existing lender to consent or convince the court that the current lender's lien is adequately protected?
  • How do bankruptcy courts treat releases of pre-petition secured lenders?

Faculty

Anderson, Eric
Eric W. Anderson

Partner
Parker Hudson Rainer & Dobbs

Mr. Anderson concentrates his practice in bankruptcy, workouts, financial restructuring and commercial finance. He...  |  Read More

Lipke, Douglas
Douglas J. Lipke

Shareholder
Vedder Price

Mr. Lipke is Co-Chair of the firm’s Insolvency, Bankruptcy and Corporate Reorganization Group. He concentrates...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

48 hours after event

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DVD

10 business days after event

$247 + $24.45 S&H