Structuring Default Provisions in Commercial Loans

Maximizing Borrower Protection and Lender Remedies Through Effective Event of Default Clauses

Recording of a 90-minute premium CLE webinar with Q&A

Conducted on Tuesday, June 7, 2011

Recorded event now available

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Program Materials

This CLE webinar will provide strategies for borrowers' and lenders' counsel negotiating event of default provisions in commercial loans. The panel will discuss the impact of the economic crisis, recent litigation trends, and key court rulings affecting the enforcement of default provisions.

Description

Default provisions that are carefully and strategically negotiated can provide flexibility to the borrower and adequate protections and remedies for the lender. Grace periods and the ability to cure defaults are critical to both borrowers and lenders.

As economic conditions continue to put stress on loan performance, the landscape for drafting and negotiating event of default provisions in commercial loans has been dramatically altered.

More lenders are attempting to enforce loan defaults and borrowers are fighting back, resulting in significant litigation. Borrowers’ and lenders’ counsel must be cognizant of these legal developments when negotiating loan documentation for new financing deals as well as existing loan workouts.

Listen as our authoritative panel of commercial finance attorneys offers effective approaches for borrowers' and lenders' counsel for negotiating event of default clauses in commercial loans.

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Outline

  1. Legal developments
    1. Impact of credit crisis on loan documentation
    2. Recent litigation trends
    3. Key case law rulings
  2. Negotiating default provisions
    1. Cross-default
    2. Insolvency-related events
    3. Change of control
    4. Material adverse change
    5. Change in business
  3. Enforcing default provisions

Benefits

The panel will review these and other key questions:

  • How have current market conditions affected the ability to enforce terms of loan agreements, particularly the critical event of default provisions?
  • How can the borrower and lender each minimize risk when drafting or relying on default provisions?
  • What lessons can be learned from recent case law developments on the enforceability of default clauses?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

Faculty

Zachary G. Newman
Zachary G. Newman
Partner
Hahn & Hessen

Mr. Newman represents companies, banking associations, leasing companies, commercial lenders, and hedge funds in...  |  Read More

Aric T. Stienessen
Aric T. Stienessen
Attorney
Hinshaw & Culbertson

He represents lenders, investment banks and borrowers in commercial finance transactions. He also represents businesses...  |  Read More

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