Distressed Lending and Strategic Investment for Secured Lenders

Structuring Loan Documentation and Protecting Rights and Remedies in Distressed Situations

Recording of a 90-minute CLE webinar with Q&A


Conducted on Tuesday, September 20, 2011

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will discuss the potential pitfalls in distressed lending and strategic investment, and provide practical guidance and tips for lenders at each of the major stages of a transaction—from loan origination through the borrower’s reorganization.

Description

Over the past few years, several key decisions by prominent courts have dramatically changed the restructuring landscape for secured lenders.

These decisions include the Seventh Circuit’s River Road opinion, the circuit split it created, and the resulting appeal of that decision to the Supreme Court—leaving open the question of whether a secured lender has the right to credit bid in a sale pursuant to a cramdown plan.

Equally problematic is the Second Circuit’s decision in DBSD, which introduces uncertainty for investors hoping to use the plan process to acquire a controlling interest in the debtor. Similarly, several decisions endorse cramdown of a secured lender on off-market terms far worse than those which existed pre-petition. As they navigate the changed terrain, secured lenders should be cognizant of these and other key decisions and trends so that they can take appropriate steps to protect their rights.

Listen as our authoritative panel of bankruptcy attorneys and professionals discusses the various pitfalls facing secured lenders and offers practical strategies for lenders to protect their rights.

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Outline

  1. Credit bidding
    1. River Road vs Philadelphia Newspapers — does a secured lender have the right to credit bid or not? Supreme Court review may settle this dispute
    2. Strategies for working around the Philadelphia Newspapers decision and ensuring the right to credit bid pending Supreme Court review
  2. Loan to own
    1. How to avoid judicial rescission of a loan-to-own strategy and preserve the right to vote on a plan
    2. Strategies for providing consideration to junior classes as a “gift” in order to strike a consensual deal
  3. Cramdown
    1. How payment terms can be adversely and non-consensually modified under a plan
    2. Strategies to maximize recoveries in a cramdown

Benefits

The panel will review these and other key questions:

  • What strategies should lenders consider for working around the Philadelphia Newspapers decision and ensuring the right to credit bid pending Supreme Court review?
  • How can lenders avoid judicial rescission of a loan-to-own strategy and preserve the right to vote on a plan?
  • What strategies should lenders take to maximize recoveries in a cramdown?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

Faculty

Ancela R. Nastasi
Ancela R. Nastasi

Partner
Richards Kibbe & Orbe

She has extensive experience representing the full range of participants in complex chapter 11 cases and out-of-court...  |  Read More

David W. Prager
David W. Prager

Goldin Associates

He is an experienced financial and restructuring professional who has advised debtors and creditors in both in and...  |  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:

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