Pre-Bankruptcy Planning for Troubled Lending Facilities: Workout Strategies for Maximizing Recovery
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will guide commercial lenders and their counsel on confronting a defaulted or troubled loan. The panel will discuss workout options and will outline steps for lenders when anticipating a borrower's potential bankruptcy.
- Triage for financially distressed companies: a secured lender's perspective
- Examine documentation and collateral perfection
- Audit inventory, accounts receivable, and equipment to determine borrowing base issues
- Review cash flow budgets and projections at least monthly
- Head in the sand
- Retention of experienced workout consultants
- Documenting a workout solution
- Obtain guarantees, letters of credit, other credit support
- Forbearance agreements
- Reservation of rights
- Resolving preference issues
- Pre-bankruptcy strategies
- Collateral sales options
- Alternatives of a debtor
- Actions in workouts that lead to potential preference issues
- Tight drafting of intercreditor agreements and agreements among lenders for enforcement in bankruptcy cases
- Relaxing financial covenants
- Avoiding "course of dealing" issues
The panel will review these and other key issues:
- What are a lender's options when dealing with a commercial borrower on the verge of default?
- What are some strategies and tactics lenders may employ to maximize recovery of the loan principal, interest, and fees, pre-bankruptcy?
- How can lenders minimize liability concerns stemming from "course of dealing" issues?
Douglas J. Lipke
Mr. Lipke is Co-Chair of the firm’s Insolvency, Bankruptcy and Corporate Reorganization Group. He concentrates... | Read More
Mr. Lipke is Co-Chair of the firm’s Insolvency, Bankruptcy and Corporate Reorganization Group. He concentrates his practice in the area of workout, bankruptcy and corporate reorganization law. Mr. Lipke represents a full range of international clients, concentrating in the representation of secured lenders and creditor rights. He also represents debtors, trustees and creditors’ committees.Close
Allen J. Dickey
Faegre Drinker Biddle & Reath
Mr. Dickey is a real estate and finance attorney who advises real estate funds, opportunity funds, real estate... | Read More
Mr. Dickey is a real estate and finance attorney who advises real estate funds, opportunity funds, real estate investment trusts, investment banks and others on commercial real estate transactions. He has exceptional experience in large portfolio transactions in numerous states.Close