Restructuring Unitranche Facilities: Navigating the Unique Aspects of Agreements Among Lenders
Rights and Remedies of First-Out and Last-Out Lenders Inside and Outside of Bankruptcy
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will provide counsel with an overview and discussion of the unique aspects of unitranche loan facilities and the interplay of those aspects in restructuring and working out of a troubled loan.
Outline
- Unique inter-lender issues to a unitranche loan facility
- Power to consent to restructuring a unitranche loan facility
- Right to exercise remedies before the commencement of a bankruptcy proceeding
- Rights of first-out lenders to stop the exercise of remedies
- Rights of last-out lenders to stop the exercise of remedies
- Consequences that may result from an exercise of remedies
- Rights of last-out lender following the commencement of a bankruptcy proceeding
- Pitfalls and opportunities for first-out lenders and last-out lenders in connection with financing a bankruptcy proceeding
- Rights of first-out lenders and last-out lenders concerning 363 sales in a bankruptcy proceeding
- Pitfalls and opportunities for first-out lenders and last-out lenders in plan classification and voting disputes
- Rights of first-out lenders and last-out lenders concerning reorganization securities
- Pitfalls and opportunities for first-out lenders and last-out lenders in a cramdown plan and the potential impact on state law causes of action to enforce the AAL
Benefits
The panel will review these and other key issues:
- What are the unique aspects of unitranche loan facilities, and what is the interplay of those aspects in restructuring and working out of a troubled loan?
- How does the AAL impact the rights of first-out and last-out lenders to exercise remedies outside of bankruptcy?
- What are the respective rights of first-out and last-out lenders in the context of a bankruptcy proceeding?
Faculty
Ana Alfonso
Partner
O'Melveny & Myers
Ms. Alfonso is a partner in O’Melveny’s Restructuring Practice. Known best for her work on behalf of... | Read More
Ms. Alfonso is a partner in O’Melveny’s Restructuring Practice. Known best for her work on behalf of secured lenders, she has represented agents, bank groups, ad hoc groups, bilateral credit providers, hedge counterparties, and other creditors as parties to financial restructurings, insolvency proceedings, enforcement actions, and litigation. She regularly helps clients formulate risk management strategies throughout the life cycle of their most complex financial transactions, often from the initial drafting stage. Ms. Alfonso has experience across a wide range of industries and has worked extensively on distressed situations arising in the areas of oil and gas, power, renewable energy, commodities trading, insurance, and reinsurance.
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Weston T. Eguchi
Partner
Willkie Farr & Gallagher
Mr. Eguchi is a partner in the Corporate & Financial Services Department and a member of the Finance Department. He... | Read More
Mr. Eguchi is a partner in the Corporate & Financial Services Department and a member of the Finance Department. He has represented hedge funds, banks, financial institutions and other parties in connection with chapter 11 and 15 commercial bankruptcy cases, out-of-court workouts, distressed asset sales and financing transactions. Mr. Eguchi regularly advises buy and sell-side firms on investments in distressed and stressed credits. He also has substantial experience related to cross-border insolvencies, derivatives and other “safe harbor” financial contracts, structured finance transactions and pensions-related issues.
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Brian Stern
Partner
O'Melveny & Myers
Mr. Stern’s practice focuses on representing borrowers (including portfolio companies), issuers, agents, and... | Read More
Mr. Stern’s practice focuses on representing borrowers (including portfolio companies), issuers, agents, and lenders in structuring and documenting secured and unsecured financing transactions, including direct lending, cash flow, asset based, mezzanine, bridge, bankruptcy (including DIP and exit facilities), and subscription line financing transactions. His recent experience includes representing lenders, agents and borrowers in acquisition financing in various industries such as technology, health care, and retail, as well as restructuring transactions for borrowers, lenders, and agents in the technology, health care, retail, and oil and gas industries.
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