Pre-Bankruptcy Planning for Troubled Loans: Workout Strategies for Maximizing Recovery
Recording of a 90-minute CLE webinar with Q&A
This CLE course will provide guidance to commercial lenders and their counsel on approaches for confronting a defaulted or troubled loan. The panel will discuss workout options and outline steps for lenders when anticipating a borrower’s bankruptcy.
Outline
- 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
Benefits
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 pre-bankruptcy?
- How can lenders minimize liability concerns stemming from “course of dealing” issues?
Faculty
Allen J. Dickey
Shareholder
Polsinelli
Mr. Dickey practices in all aspects of real estate finance, securitization, acquisition, leasing and development. He... | Read More
Mr. Dickey practices in all aspects of real estate finance, securitization, acquisition, leasing and development. He also has experience in equity financing, mortgage backed securitization, mortgage, and mezzanine and subordinate loan origination. He has published several articles regarding real estate, structured finance, commercial lending, and loan enforcement, and often lectures to attorney and industry groups regarding real estate, lending and loan enforcement topics. Mr. Dickey’s experience includes working with lenders, developers, investors and business owners on all aspects of real estate transactions, including mortgage and mezzanine loan origination and enforcement, CMBS lending, mortgage backed securitization, construction finance, development finance and loan workouts, modifications and extensions.
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Douglas J. Lipke
Shareholder
Vedder Price
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.
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