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Early Stages of a Commercial Loan Workout: Pre-Negotiation Agreements and Other Key Considerations

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

This program is included with the Strafford CLE Pass. Click for more information.
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Conducted on Thursday, May 5, 2022

Recorded event now available

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This CLE course will provide an in-depth discussion of considerations to be made by borrowers, guarantors, lenders, and servicers early on in the commercial loan workout process.


After a loan default has occurred, both sides must assess the extent and materiality of the default(s) and consider next steps, such as default notices and potential exit strategies. Additionally, counsel may need to conduct a thorough review of the loan file to identify potential documentation issues and to confirm that security interests are properly perfected in the loan collateral. The panel will discuss these initial considerations.

From the start of workout negotiations, both sides may be exposed to a variety of risks. Often these risks can be mitigated by entering into a pre-negotiation agreement which allows the parties to engage in workout discussions while preserving certain rights if no forbearance or loan modification agreement is reached.

Accordingly, the panel will discuss pre-negotiation agreements, including how they can be used by borrowers, guarantors, and lenders to protect themselves. The panel will also discuss key provisions that may be incorporated in a pre-negotiation agreement and the enforceability of such agreements.

Listen as our authoritative panel discusses pre-negotiation agreements and other considerations early on in the workout process.



  1. Identifying defaults and strategizing on both sides--is a workout feasible?
  2. Potential initial steps to take after default, including a file review and the consideration of default notices
  3. Pre-negotiation agreements: key terms and considerations


The panel will review these and other important issues:

  • How does the concept of materiality figure into a lender's decision on whether to pursue remedies against a borrower?
  • What due diligence steps should counsel take before engaging in workout discussions?
  • When is a pre-negotiation agreement appropriate for a given transaction?
  • What are the potential benefits for each side of a pre-negotiation agreement?
  • After a pre-negotiation agreement is executed, what comes next?


Goldman, Arren
Arren S. Goldman

Seyfarth Shaw

Mr. Goldman concentrates his practice in commercial real estate transactions. He is co-lead of the firm’s...  |  Read More

Houck, Cara
Cara M. Houck

Miller Canfield Paddock and Stone

Ms. Houck is a trial attorney specializing in commercial litigation. Prior to joining the firm, she worked at...  |  Read More

Lipkis, Herman
Herman R. Lipkis

Holland & Knight

Mr. Lipkis focuses his practice on structured real estate finance, acquisitions, dispositions, hospitality...  |  Read More

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