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Bankruptcy Restructuring and Guarantee Liability: Issues for Debtors, Borrowers, Lenders, and Third-Party Creditors

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

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, April 2, 2024

Recorded event now available

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This CLE webinar will discuss the legal and economic issues related to the treatment and enforcement of personal and intercorporate guarantees before, during, and after bankruptcy or confirmation, in the context of frequently occurring scenarios.


In the corporate context, whether representing the primary obligors or the guarantor, counsel negotiating and drafting guarantees must keep in mind that the bankruptcy of any party to the agreement can significantly affect the rights and remedies of all. Intercorporate guaranties, including upstream, downstream, and cross-stream guaranties, and guaranties in fund finance present unique and complex problems in bankruptcy.

As to personal guarantees, guarantors often mistakenly believe that they are guaranteeing only against certain enumerated and affirmative bad acts by the borrower-debtor, only to discover that the obligations are more extensive. On the other hand, if the debtor is the guarantor, the borrower and its creditors may have to wait years before they have access to the assets of the guarantor to collect on a judgment against an affiliated borrower. The existence of a guarantee also raises a series of complex and challenging issues relating to whether such a pre-petition guarantee can be enforceable after discharge.

Listen as this experienced panel of bankruptcy lawyers offers best strategies and practices for enforcing guarantees affected by bankruptcy.



  1. Types of guarantees and relevance to bankruptcy
  2. Applicability of the automatic stay
  3. Impact of various claim limits in bankruptcy on guarantees
  4. Multiple guarantees of the same obligation against multiple debtors
  5. Effect of confirmation, including third-party releases
  6. Options under Subchapter V of Chapter 11


The panel will discuss these and other important issues:

  • When is a guaranty claim reduced by recovery in a debtor's bankruptcy case?
  • How many claims do you have if you have multiple guaranty claims by multiple debtor subsidiaries, just one or multiple claims in each subsidiary debtor?
  • Are bad boy guarantees triggered by bankruptcy enforced?
  • What happens if the business later incurs additional obligations after the business owner received a bankruptcy discharge?


Lee, Kyung
Kyung S. Lee

Shannon & Lee

Mr. Lee practices in the area of debt restructuring and corporate reorganizations. He has served as debtor's...  |  Read More

Prescott, Adam
Adam R. Prescott

Bernstein Shur Sawyer & Nelson

With experience in a broad range of industries, including healthcare, hospitality, food and beverage, manufacturing,...  |  Read More

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