Nonrecourse Carve-Outs, Bad-Boy Guaranties, and Personal Liability
Avoiding or Resolving Lender and Guarantor Disputes in and Outside of Bankruptcy
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will offer real estate and finance counsel an examination of some of the more troublesome provisions at the heart of disputes between borrowers and lenders. The panel will review commonly used carve-outs in nonrecourse clauses, analyze operative provisions in bad-boy guaranties, and discuss significant court cases, including Cherryland and its progeny. The panel will outline strategies for avoiding and resolving disputes involving these provisions.
Outline
- "Springing recourse" and bad-boy guaranties
- Single-purpose entity/separateness: requirements and violations; Cherryland
- Substantive consolidation in bankruptcy
- Other
- Nonrecourse carve-outs
- Carve-outs from A to Z
- Environmental indemnities
- Recent case law concerning nonrecourse loans
- Sample provisions
- Bankruptcy perspective
Benefits
The panel will review these and other relevant issues:
- What are the types of nonrecourse carve-outs? How should counsel approach them?
- What are the legal and practical ramifications for the guarantor of a defaulted loan under a carve-out guaranty?
- What are the principal strategies for resolving disputes involving these provisions?
- How have these provisions been treated in bankruptcy? What are some strategies for resolving disputes in bankruptcy?
Faculty
Kyung S. Lee
Partner
Parkins Lee & Rubio
Mr. Lee practices in the area of debt restructuring and corporate reorganizations. He has served as debtor's... | Read More
Mr. Lee practices in the area of debt restructuring and corporate reorganizations. He has served as debtor's counsel for companies in the airline, real estate, oil and gas, communications, healthcare, distribution, manufacturing and convenience store industries. He has also represented lenders, creditors, creditors' committees and investors involved in workouts and Chapter 11 reorganizations as well as litigating on behalf of the various parties. He has extensive experience working closely with senior management and financial advisors on valuation of enterprises and assets and development of turnaround and restructuring business plans.
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Joey E. Lubinski
Partner
Husch Blackwell
Mr. Lubinski is a member of the firm’s Real Estate, Development and Construction team. His varied transactional... | Read More
Mr. Lubinski is a member of the firm’s Real Estate, Development and Construction team. His varied transactional real estate practice runs the life cycle of commercial development, with particular focus on real estate finance matters. Mr. Lubinski has extensive experience in the acquisition, disposition and financing of commercial properties. He is a Fellow in the American College of Mortgage Attorneys and a former Chair of the Hospitality, Timesharing and Common Interest Development Group of the Real Property Trust and Estate Section of the American Bar Association, and currently serves on several standing committees for the Section.
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William S. Small
Partner
Enenstein Law
Mr. Small is a nationally recognized real estate lawyer with over 38 years of experience successfully handling a broad... | Read More
Mr. Small is a nationally recognized real estate lawyer with over 38 years of experience successfully handling a broad range of real property transactions. His real estate practice heavily emphasizes the representation of community, regional and national banks, and other institution lenders in commercial real estate lending and construction finance; acquisitions and dispositions of commercial real estate; representation of landlords and tenants in leasing transactions for retail, office and industrial properties; and commercial real estate development matters, including preparation of construction contracts.
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