Dealing With Defaults

Webinar Overview

Some borrowers default. One type of default is a payment default- when the loan is not paid when it becomes due, or a particular payment is missed. The other type of default is a covenant default. This webinar explains both, and discusses what happens when one happens.

Among other subjects, this webinar will help attendees:

• Understand the types of defaults
• Differentiate between payment defaults and covenant defaults, including their legal and financial implications
• Identify common terms and provisions in loan agreements that could lead to covenant defaults (e.g., financial ratios, reporting obligations)
• Analyze the consequences of default
• Explore the potential legal, financial, and reputational consequences of both payment and covenant defaults
• Learn proactive steps borrowers can take to avoid defaults, including timely communication with lenders and adherence to loan covenants
• Gain insight into typical lender responses to defaults, such as acceleration clauses or loan restructuring, and how borrowers can negotiate favorable outcomes

Other Webinars in this Series

• Basic Concepts Applicable to All Borrowers & Lenders (Premiered on April 9, 2025)
• What Kind of Loan? (Premiered on March 12, 2025)
• Alternative Structures – PO Financing, Factoring & MCA (Premiered on August 8, 2024)
• Trade Finance Basics (Premiered on June 13, 2024)