Distressed Financing: Avoiding Pitfalls in Planning and Execution
Agency Resignation and Transfer, Rebalancing of Facilities, and Internal and Regulatory Compliance Considerations
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will examine some of the more common pitfalls in loan restructurings that are frequently unidentified or ignored until they appear at or after closing. The panel discussion will include agency resignations, loan mechanics, internal compliance, and regulatory considerations, as well as general strategies to identify and address these traps.
Outline
- Why distressed credits are particularly subject to pitfalls
- Issues with implementation of complex negotiated structures
- Minority lenders, small holders, and agents may not participate in structuring discussions
- Manual processes or approvals required internally by parties
- Common issues regarding lenders and administrative agents and when agents cannot fulfill duties to all constituencies
- Rebalancing of facilities and facility exchanges
- Implications for paydowns or reductions of revolving facilities
- Regulatory and internal compliance issues
- KYC and AML attributable to new parties or new deposit accounts required for implementation of the transaction
- ESG policies
- Flood Insurance and other environmental approvals related to real estate
- Additional finance considerations when negotiating restructuring terms
- Letters of credit
- Treatment in a refinancing
- Treatment in a bankruptcy
- Arrangements for halting trades
- Letters of credit
Benefits
The panel will review these and other vital issues:
- Why is an administrative agent more likely to resign and be vulnerable to removal in a distressed credit, and how might that affect a restructuring of the loan?
- When should minority stakeholders and other parties be included in the restructuring process, and how can their absence impede the transaction?
- What are strategies to increase the likelihood of a smooth execution?
Faculty
![Braunstein, Samantha](/img/t/f72ee72d2351e920693bebe254d35711.jpg)
Samantha Braunstein
Counsel
Freshfields Bruckhaus Deringer
Ms. Braunstein is counsel in our Restructuring and Insolvency team. She counsels clients on various financial... | Read More
Ms. Braunstein is counsel in our Restructuring and Insolvency team. She counsels clients on various financial restructuring matters. Ms. Braunstein's experience includes both in-court and out-of-court representation of agents, banks, funds, borrowers and potential purchasers of distressed debt and assets. Much of her experience entails multi-jurisdictional complexities.
Close![Nemergut, Lacey](/img/t/d8262e2b4e454899238065ed2b5ed5da.jpg)
Lacey Nemergut
Attorney
Freshfields Bruckhaus Deringer
Ms. Nemergut is an associate in the global transactions group in New York.
| Read MoreMs. Nemergut is an associate in the global transactions group in New York.
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