Mezzanine Loan Foreclosures: Effectuating a UCC Foreclosure Sale and Navigating Bankruptcy Pitfalls

Protecting Lender and Borrower Interests and Overcoming Obstacles to the Sale

A live 90-minute premium CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Thursday, August 18, 2022

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, July 22, 2022

or call 1-800-926-7926

This CLE course will guide counsel to commercial borrowers and lenders facing a mezzanine loan foreclosure under Article 9 of the Uniform Commercial Code (UCC). The panel will outline best practices for lenders to carry out a UCC foreclosure on a mezzanine loan.

Description

Mezzanine lenders face many issues when seeking to foreclose on equity interests securing a mezzanine loan. Similarly, mezzanine borrowers must make several strategic decisions when facing a lender's post-default enforcement of a mezzanine loan.

Unlike traditional mortgage loans, UCC Article 9 governs mezzanine loans. The UCC foreclosure process contains potential pitfalls and grey areas. However, counsel can address legal concerns and minimize risks with careful planning.

Listen as our authoritative panel addresses critical legal issues for borrowers and lenders facing a mezzanine loan foreclosure under UCC Article 9 and provides best practices to effectuate a UCC foreclosure. The panel will also discuss bankruptcy considerations that impact borrowers' and lenders' strategies when a mezzanine loan defaults.

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Outline

  1. Business and legal considerations
    1. Business review
    2. Due diligence
    3. Legal review
  2. Foreclosure by sale
    1. Basic rules
    2. Public vs. private sale
    3. Mechanics of the foreclosure process
    4. Traps for the unwary
    5. Borrower and guarantor responses to lender actions
  3. Strict foreclosure
    1. Nature of the remedy
    2. Strict foreclosure mechanics
    3. Potential problems
  4. Bankruptcy issues
    1. Joint administration
    2. Dismissal of bad faith filings
    3. Lift stay motions
    4. Substantive consolidation
    5. Other bankruptcy issues

Benefits

The panel will review these and other key issues:

  • What protections does UCC Article 9 afford mezzanine borrowers facing loan foreclosure?
  • How should intercreditor agreements be structured to protect the interests of mezzanine lenders?
  • What strategies should mezzanine lenders and borrowers use to effectuate a smooth UCC foreclosure?
  • What bankruptcy considerations come into play when a mezzanine loan goes into default?

Faculty

Weise, Steven
Steven O. Weise

Partner
Proskauer Rose

Mr. Weise practices in all areas of commercial law and has extensive experience in financing, especially in those...  |  Read More

Cochran, James S.
James Cochran

Partner
O'Connor Cochran

Mr. Cochran has extensive experience advising clients in workouts and restructurings involving complex collateral...  |  Read More

Attend on August 18

Early Discount (through 07/22/22)

Cannot Attend August 18?

Early Discount (through 07/22/22)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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