Restructuring Unitranche Facilities: Navigating the Unique Aspects of Agreements Among Lenders
Rights and Remedies of First-Out and Last-Out Lenders Inside and Outside of Bankruptcy
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will provide counsel with an overview and discussion of the unique aspects of unitranche loan facilities and the interplay of those aspects in restructuring and working out of a troubled loan.
Outline
- Unique inter-lender issues to a unitranche loan facility
- Power to consent to restructuring a unitranche loan facility
- Right to exercise remedies before the commencement of a bankruptcy proceeding
- Rights of first-out lenders to stop the exercise of remedies
- Rights of last-out lenders to stop the exercise of remedies
- Consequences that may result from an exercise of remedies
- Rights of last-out lender following the commencement of a bankruptcy proceeding
- Pitfalls and opportunities for first-out lenders and last-out lenders in connection with financing a bankruptcy proceeding
- Rights of first-out lenders and last-out lenders concerning 363 sales in a bankruptcy proceeding
- Pitfalls and opportunities for first-out lenders and last-out lenders in plan classification and voting disputes
- Rights of first-out lenders and last-out lenders concerning reorganization securities
- Pitfalls and opportunities for first-out lenders and last-out lenders in a cramdown plan and the potential impact on state law causes of action to enforce the AAL
Benefits
The panel will review these and other key issues:
- What are the unique aspects of unitranche loan facilities, and what is the interplay of those aspects in restructuring and working out of a troubled loan?
- How does the AAL impact the rights of first-out and last-out lenders to exercise remedies outside of bankruptcy?
- What are the respective rights of first-out and last-out lenders in the context of a bankruptcy proceeding?
Faculty
Weston T. Eguchi
Partner
Willkie Farr & Gallagher
Mr. Eguchi is a partner in the Corporate & Financial Services Department and a member of the Finance Department. He... | Read More
Mr. Eguchi is a partner in the Corporate & Financial Services Department and a member of the Finance Department. He has represented hedge funds, banks, financial institutions and other parties in connection with chapter 11 and 15 commercial bankruptcy cases, out-of-court workouts, distressed asset sales and financing transactions. Mr. Eguchi regularly advises buy and sell-side firms on investments in distressed and stressed credits. He also has substantial experience related to cross-border insolvencies, derivatives and other “safe harbor” financial contracts, structured finance transactions and pensions-related issues.
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Brad B. Erens
Partner
Jones Day
Mr. Erens' practice focuses on corporate restructuring, workout, and bankruptcy matters. He has substantial... | Read More
Mr. Erens' practice focuses on corporate restructuring, workout, and bankruptcy matters. He has substantial experience in representing companies, bank groups, other secured and unsecured creditors, committees, asset purchasers, and other interested parties in a wide variety of restructuring matters. He oversees his firm's Business Restructuring & Reorganization Practice.
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Leonela Vaccaro Padron
Counsel
Venable
Ms. Padrón represents borrowers and lenders in a broad range of financing transactions, with a particular focus... | Read More
Ms. Padrón represents borrowers and lenders in a broad range of financing transactions, with a particular focus on fund finance (subscription lines, net-asset-value facilities, GP, and management company lines of credit), direct lending, syndicated and bilateral working capital facilities, project financings, and warehouse financings, among others. She has served as senior legal counsel at a construction and development company, where she oversaw the legal workstreams related to PPP infrastructure projects in North America. Ms. Padrón also provided advice and input to project management and commercial teams on legal issues related to procurements and assisted in structuring certain aspects of the transactions, such as joint ventures among equity and operating partners, as well as the financing of the projects.
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