Structuring Forbearance Agreements and Strengthening Lender Collateral Position
Deferral of Existing Defaults, Borrower R and W, Confirmation of Liens, Ratification of Obligations, Releases, Prejudgment Remedies
Recording of a 90-minute CLE video webinar with Q&A
This CLE webinar will equip counsel to negotiate and draft forbearance agreements that provide maximum protection of lender interests while at the same time minimizing the risk of lender liability claims. A well structured and well drafted forbearance agreement can strengthen the lender's position should the debtor-borrower further default, file bankruptcy, or seek other insolvency relief. The program will also discuss how the workout process creates opportunities to correct deficiencies in existing loan terms, shore up weak documentation, or secure additional collateral or covenants.
- Correcting loan documentation deficiencies and strengthening collateral position
- Updated UCC searches
- Loan document review
- Special collateral perfection examination
- Tax and judgment lien search
- Additional collateral
- Drafting the forbearance agreement
- Waiver of existing defaults
- Borrower representations and warranties
- Strict compliance with loan documents
- The expiration date and early termination
- Ratification of obligations
- Confirmation of liens and security interests
- Agreements to prejudgment remedies, such as receivership
- Release of claims
- Other lender protections
The panel will review these and other high priority issues:
- What are the critical provisions in the forbearance agreement?
- What unique risks does the borrower's bankruptcy pose and how can counsel minimize these risks in crafting the forbearance agreement?
- What steps can the lender take during a loan workout to strengthen its position and minimize its bankruptcy or foreclosure sale risks?
Theodore A. Cohen
Mr. Cohen specializes in creditors' rights and focuses on lender, indenture trustee, and lessor representation... | Read More
Mr. Cohen specializes in creditors' rights and focuses on lender, indenture trustee, and lessor representation in bankruptcies, loan and lease workouts, defaulted bond financings and secured transactions. He also represents buyers of distressed companies in bankruptcy 363 sales and from assignees for the benefit of creditors.Close
Alan M. Feld
Mr. Feld is a partner in the Finance and Bankruptcy Practice Group and Real Estate, Land Use and Environmental Practice... | Read More
Mr. Feld is a partner in the Finance and Bankruptcy Practice Group and Real Estate, Land Use and Environmental Practice Group in the firm's Los Angeles office. He serves as the Leader of the firm's Commercial Mortgage-Backed Securities Team.Close