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
A live 90-minute CLE video webinar with interactive 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.
Outline
- 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
- Guarantees
- Drafting the forbearance agreement
- Waiver of existing defaults
- Borrower representations and warranties
- Strict compliance with loan documents
- The expiration date and early termination
- Fees
- Ratification of obligations
- Confirmation of liens and security interests
- Agreements to prejudgment remedies, such as receivership
- Release of claims
- Other lender protections
Benefits
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?
Faculty
Gregory G. Hesse
Partner
Hunton Andrews Kurth
For the past 35 years, Mr. Hesse has focused his practice on searching for pragmatic solutions to complex problems in... | Read More
For the past 35 years, Mr. Hesse has focused his practice on searching for pragmatic solutions to complex problems in the context of restructuring, insolvency, and bankruptcy. He represents borrowers, debtors, secured creditors, trade creditors, contract counterparties, unsecured creditors’ committees, equity holders, and trustees on all sides of insolvency situations, with an emphasis on representing creditors of all types. Although Mr. Hesse's practice is industry agnostic, adapting to fluctuations in the business cycle, his matters often occur within the retail and consumer products, real estate, and consumer finance industries. In addition to his bankruptcy practice, Mr. Hesse advises financial services clients on consumer protection compliance and litigation.
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