Loan Covenants, Events of Default and MAC Clauses

Structuring Effective Credit Agreement Provisions to Maximize Borrower Protection and Lender Remedies

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


Conducted on Tuesday, June 26, 2012

Recorded event now available

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Program Materials

This CLE webinar will provide borrowers' and lenders' counsel with a review of loan documentation recent trends and best practices for structuring covenants and events-of-default clauses in commercial loans.

Description

Strategically crafted loan covenants and default provisions can provide flexibility to the borrower and adequate protections and remedies for the lender. For example, grace periods and the ability to cure defaults are critical to both borrowers and lenders.

Equity-cure rights have made a comeback in some transactions, although are more commonly used in sponsored transactions. How the proceeds of the cure are applied is an issue becoming more favorable to borrowers.

More lenders are attempting to enforce loan defaults and borrowers are fighting back, resulting in significant litigation. Carefully structured loan provisions can minimize disputes between the parties and reduce the risk of suit.

Listen as our authoritative panel of commercial finance attorneys offers effective approaches for borrowers' and lenders' counsel for structuring financial covenants and events-of-default provisions.

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Outline

  1. Loan covenants
    1. Affirmative
    2. Negative
    3. Financial
    4. Equity cures
    5. Other covenants
  2. Events of default provisions
    1. Cross-default
    2. Insolvency-related events
    3. Change of control
    4. Material adverse change
    5. Change in business

Benefits

The panel will review these and other key questions:

  • What are borrowers' and lenders' best tactics for proactively mitigating risk when negotiating and drafting financial covenants?
  • What financial covenants are lenders particularly insistent upon?
  • How can the borrower and lender each minimize risk when drafting or relying on default provisions?

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

Faculty

Aric T. Stienessen
Aric T. Stienessen

Partner
Hinshaw & Culbertson

He represents lenders, investment banks and borrowers in commercial finance transactions. He also represents businesses...  |  Read More

Charles M. Tatelbaum
Charles M. Tatelbaum

Partner
Hinshaw & Culbertson

He focuses his practice on bankruptcy and creditors’ rights, complex business litigation, Uniform Commercial Code...  |  Read More

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