Exercising Remedies After a Default: Forbearance Agreements and Other Workout Options
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will provide lender's counsel with a framework for responding to commercial loan defaults. The panel will discuss remedies typically available under loan documents, creative approaches to deal with troublesome loans, and issues the lender should consider before proceeding with acceleration and collection. The panel will also discuss forbearance agreements and loan restructuring and how they can best be used to rescue the transaction, prevent bankruptcy or litigation, and set up the lender for the best possible outcome if bankruptcy or litigation occurs.
Outline
- Exercising loan remedies after default
- Pre-action plan: initial fact gathering and development of strategy
- Dos and don'ts of initial communications and meetings with borrower
- Issues to be aware of concerning specific types of collateral
- Forbearance agreements
- Lender and borrower benefits
- Difference from loan modification/amendment
- Standard terms
- Remedies
- Offset
- Judgment/foreclosure decree
- Involuntary bankruptcy
- Foreclosure
- Receivership
- Assignment for benefit of creditors
- Deed in lieu
- Self-liquidation by borrower
Benefits
The panel will review these and other noteworthy issues:
- What are the first steps a lender should take after a loan default?
- How should a lender approach communications with a borrower?
- When is a forbearance agreement a desirable alternative to full-blown enforcement of remedies?
- What terms are typically included in a forbearance agreement?
- What are some pitfalls to consider when entering into a loan modification?
Faculty
Brian J. Koenig
Shareholder
Koley Jessen
In his commercial bankruptcy and financially-distressed transactions practice, Mr. Koenig counsels a variety of clients... | Read More
In his commercial bankruptcy and financially-distressed transactions practice, Mr. Koenig counsels a variety of clients including creditors, debtors, bankruptcy trustees, creditor committees, and post-bankruptcy investors, to help them evaluate risks, minimize their exposure, maximize their recoveries, structure transactions, and cost-effectively resolve issues. His experience includes: formulating strategies to assist banks and companies dealing with financially-distressed and bankrupt customers to maximize their recoveries; negotiating out-of-court workout and forbearance agreements; counseling creditors, debtors, and investors in commercial transactions and foreclosures, including mortgage foreclosure proceedings, strict foreclosure actions, and UCC sales; and litigating matters in state and federal courts, including actions under guaranties, replevin actions, avoidance actions, objections to discharge, dischargeability actions, preference claims, subordination claims, and equitable recharacterization claims, among others.
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Kenneth Miller
Fellow
SMBC MANUBANK
Mr. Miller enjoys a diverse practice, primarily focusing on representing lenders, borrowers, landlords, and tenants in... | Read More
Mr. Miller enjoys a diverse practice, primarily focusing on representing lenders, borrowers, landlords, and tenants in complex real and personal property loan and lease transactions. He has developed successful procedures for the preparation, negotiation and closing of commercial secured loans on behalf of both lenders and borrowers, maximizing quality and cost efficiency. Recent accomplishments include preparation and negotiation of secured multi-million dollar loans involving commercial real and personal property located throughout the western U.S. for a variety of clients including Fortune 200 companies. Mr. Miller represents creditors in a wide variety of workouts, litigation and bankruptcy matters. His successes include not merely victories in courts, such as the preparation of a successful motion to dismiss a $40 million complaint, but also triumphs out of court, such as the completion of "failed" real estate construction projects for his lender clients. Mr. Miller is a fellow of the American College of Mortgage Attorneys and is the Chair of its Publications Sub-Committee and a Co-Chair of its Insolvency Committee.
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