Enforceability of Intercreditor Agreements in Bankruptcy: Maximizing Recovery for First and Second Lienholders

An encore presentation featuring live Q&A

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


Conducted on Tuesday, November 7, 2017

Recorded event now available

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Program Materials

This CLE webinar will provide guidance to commercial finance counsel seeking to enforce or resist enforcement of intercreditor agreements during bankruptcy proceedings. The panel will discuss ways that first-lien and second-lien lenders can best protect their economic interests in the event of bankruptcy.

Description

Bankruptcy courts must often resolve issues regarding the enforceability of intercreditor agreements between first- and second-lien lenders. Intercreditor arrangements are usually evidenced by an intercreditor agreement executed by senior and subordinated lenders who have separate credit agreements with the borrower, but they may also be contained in a single, unitranche agreement executed by all of the parties.

Section 510 of the Bankruptcy Code states that subordination agreements are enforceable in bankruptcy cases just as they are under non-bankruptcy law. However, case law provides limited guidance on the enforceability of provisions that restrict what some courts believe are fundamental bankruptcy rights.

Listen as our authoritative panel of finance and bankruptcy attorneys discusses the forms of intercreditor agreements now being used, current case law addressing the enforceability of intercreditor agreements in bankruptcy proceedings, and how first-lien and second-lien lenders can best protect their economic interests in the event of bankruptcy.

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Outline

  1. Forms of intercreditor agreements currently being used in the market
  2. Recent case law on the enforceability of intercreditor agreements in bankruptcy proceedings
    1. Cases holding that an intercreditor agreement cannot waive a second-lien lender’s fundamental bankruptcy rights
    2. Cases holding that an intercreditor agreement may waive statutory bankruptcy rights if enforceable as a matter of applicable state law
  3. Best practices when drafting and negotiating intercreditor agreements to protect lender interests

Benefits

The panel will review these and other key issues:

  • What are the lessons for lenders’ counsel from recent bankruptcy case law regarding intercreditor agreements?
  • Which intercreditor provisions require special attention as to enforceability in bankruptcy?
  • How can senior and subordinate lenders best protect their interests in bankruptcy?

This is an encore presentation with live Q&A.

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

Dobbs, Edward
C. Edward Dobbs

Partner
Parker Hudson Rainer & Dobbs

Mr. Dobbs’ practice for more than 41 years has been concentrated in documenting and closing commercial loans for...  |  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

$297

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48 hours after event

$297