Mezzanine Loan Foreclosures: Conducting a UCC Foreclosure Sale and Navigating Bankruptcy Pitfalls
Protecting Lender and Borrower Interests and Overcoming Obstacles to the Sale
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will guide counsel for commercial borrowers and lenders facing a mezzanine loan foreclosure under Article 9 of the Uniform Commercial Code (UCC). The panel will outline best practices for lenders to carry out a UCC foreclosure on a mezzanine loan.
Outline
- Business and legal considerations
- Business review
- Due diligence
- Legal review
- Foreclosure by sale
- Basic rules
- Public vs. private sale
- Mechanics of the foreclosure process
- Traps for the unwary
- Borrower and guarantor responses to lender actions
- Strict foreclosure
- Nature of the remedy
- Strict foreclosure mechanics
- Potential problems
- Bankruptcy issues
- Joint administration
- Dismissal of bad faith filings
- Lift stay motions
- Substantive consolidation
- Other bankruptcy issues
Benefits
The panel will review these and other key issues:
- What protections does UCC Article 9 afford mezzanine borrowers facing loan foreclosure?
- How should intercreditor agreements be structured to protect the interests of mezzanine lenders?
- What strategies should mezzanine lenders and borrowers use to effectuate a smooth UCC foreclosure?
- What bankruptcy considerations come into play when a mezzanine loan goes into default?
Faculty
James Cochran
Partner
O'Connor Cochran
Mr. Cochran has extensive experience advising clients in workouts and restructurings involving complex collateral... | Read More
Mr. Cochran has extensive experience advising clients in workouts and restructurings involving complex collateral packages and multiple jurisdictions. He represents lenders in mezzanine loan transactions and other sophisticated commercial real estate financings, and has acted for lenders and other stakeholders in various bankruptcy matters, including DIP financings, section 363(f) sales and claims transfers.
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Steven O. Weise
Partner
Proskauer Rose
Mr. Weise practices in all areas of commercial law and has extensive experience in financing, especially in those... | Read More
Mr. Weise practices in all areas of commercial law and has extensive experience in financing, especially in those secured by personal property, including structured financing. He is regarded as one of the foremost authorities on Article 9 of the UCC. He is a member of the Permanent Editorial Board for the UCC and a member of the American Law Institute’s UCC Article 9 Drafting Committee. Mr. Weise is also the past chair of the American Bar Association’s Business Law Section Legal Opinions Committee.
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