Distressed Loan Workouts: How Equity Cure Rights Work, Negotiating Loan Restructuring and Forbearance Agreements
Curing and Addressing Financial Covenant Breaches From Lender and Borrower Perspectives
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will provide counsel with strategies for restructuring a distressed loan, focusing on equity cure rights and loan amendment and modification techniques. The program will discuss strategies from the perspectives of both lenders and borrowers to execute a successful and efficient workout-out strategy.
Outline
- Equity cure right structures, impact on EBITDA
- Restrictions and limitations on equity cures
- Type of equity
- Source of capital
- Use of proceeds
- Amount
- Frequency/timing
- Impact of prepayment
- Restrictions and limitations on equity cures
- Post-default alternatives
- Forbearance agreements
- Restructuring agreements
Benefits
The panel will review these and other key issues:
- What benefits do equity cure right provisions provide borrowers in sponsor-backed deals and what restrictions do lenders seek to impose on the right to cure?
- What is the difference between forbearance and restructuring—and which option is best for the lender or the borrower?
- What steps can the lender take during a loan workout to strengthen its position and minimize its risks in bankruptcy or foreclosure sale?
Faculty
Vanessa G. Spiro
Partner
K&L Gates
Ms. Spiro is a member of the firm's banking & asset finance practice group. She has substantial experience in... | Read More
Ms. Spiro is a member of the firm's banking & asset finance practice group. She has substantial experience in leveraged finance and represents financial institutions and other creditor entities and borrowers (corporates, sponsors and other capital end-users) in connection with acquisition financings, cash flow and asset-based transactions and other finance matters. She also has significant experience in restructurings, workouts, distressed debt matters and debtor-in possession and exit financings.
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Bukola Mabadeje
Atty
Buchalter Nemer
Ms. Mabadeje practices in the area of commercial lending, technology & life sciences lending, and real estate... | Read More
Ms. Mabadeje practices in the area of commercial lending, technology & life sciences lending, and real estate matters. She represents institutional lenders in structuring, negotiating and documenting cash flow and asset based loans and the modification of the facilities as required. She has experience in international transactions with expertise in the oil & gas industry. Her practice covers a range of financing including acquisition, asset, infrastructure, and real estate finance using a mix of debt, equity and mezzanine financing structures.
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