Syndicated Credit Facility Restructuring and Workouts

Navigating Divergent Interests Among Lenders, Confidentiality, Privilege Waivers and the Role of the Agent

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


Conducted on Tuesday, December 19, 2017

Recorded event now available

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Program Materials

This CLE webinar will discuss key legal issues that arise in syndicated credit workouts, particularly for counsel representing the administrative agent and the other lenders in the facility. The program will address unique issues in a multi-lender facility workout and best practices for lenders and administrative agents to form and execute a successful and efficient workout strategy.

Description

Unlike a single secured lender confronting a workout situation, a multiple lender facility introduces additional layers of complexity—legal and negotiation issues. Co-lenders may second-guess decisions made by the administrative agent before the onset of the borrower’s financial difficulties.

Non-traditional lenders such as hedge funds may have different goals and risk tolerance than traditional lenders. New lenders may appear during the workout as a result of loan or portfolio sales.

A multi-lender facility also magnifies the risks—workout strategies may not be as well guarded from disclosure to the borrower and inadvertent waivers of attorney-client privilege may occur. Decisions by the lending group often require prolonged discussions among lenders, hard-fought consensus, and voting by lenders in the group. In certain lending arrangements, the voting requirements among revolving and term lenders may differ.

Listen as our authoritative panel of finance attorneys discusses how the unique aspects of a multi-lender syndicated facility affects the restructuring and working out of a troubled loan. The panel will analyze the practical and legal issues facing counsel representing the administrative agent and the other lenders in the facility and look at best practices for lenders and administrative agents to achieve a successful workout-out.

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Outline

  1. Varied and divergent interests of the lenders
  2. Responsibilities of the agent to other lenders
  3. Joint defense and confidentiality agreements
  4. Voting rights and issues
  5. Key terms of the syndicated loan agreement governing co-lender rights and obligations
  6. What’s Going On in the Courts

Benefits

The panel will review these and other key issues:

  • What are the unique aspects of multi-lender syndicated loan facilities and what is the interplay of those aspects in restructuring and working out a troubled loan?
  • How does the syndicated loan agreement impact the rights of the agent to comply with instructions from co-lenders?
  • What disclosures about the borrower, the terms of the loan and borrower defaults must the agent provide to co-lenders?
  • What happens when what “can’t go wrong” does go wrong?

Faculty

Manzer, Alison
Alison R. Manzer

Partner
Cassels Brock & Blackwell

Ms. Manzer is a member of the Firm's Financial Services Group. Her practice encompasses a broad range of commercial...  |  Read More

Schulwolf, James
James C. Schulwolf

Partner
Shipman & Goodwin

Mr. Schulwolf represents senior and mezzanine lenders, venture capital investors (including SBIC’s), private...  |  Read More

Wurst, Jeffrey
Jeffrey A. Wurst

Partner
Ruskin Moscou Faltischek

Mr. Wurst is the chairman of the firm’s Financial Services, Banking, & Bankruptcy Department. He has...  |  Read More

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