A Distressed Company and its Secured Lender

Series: RESTRUCTURING, INSOLVENCY & TROUBLED COMPANIES 2018

Most businesses of any meaningful size in the United States have a line of credit or term loan with a bank or other lender that is supported by a lien on substantially all of the assets of that business. And a secured lender’s agreement with its borrower commonly provides the lender with very strong legal remedies in the event the borrower defaults on the loan (whether the default is a “payment default” or a “covenant default”).

What can a secured lender do upon a borrower’s default? What will a lender actually do upon a borrower’s default? What factors can and should a secured lender consider when deciding what action to take? What can and should a borrower do in this situation? This webinar discusses the industry norms and practices that secured lenders and advisors to distressed companies tend to follow when dealing with a defaulting borrower. It paints a picture of the path a “workout” may follow, discusses the leverage points that both the secured lender and the borrower may have, and explains the various possible outcomes.

Principal Audience: Attorneys and Advisors, Business Owners and Executives, Investors

Partner: ChamberWise, West LegalEdcenter