The pandemic has hurt many companies. Fortunately, at the urging of the Federal government and with relief from regulators, many secured lenders have refrained from taking action against borrowers in default under the terms...more
In a historically low interest rate environment, where can you find returns in the double digits? Surprisingly, the answer is in chapter 11 bankruptcy cases as a “DIP” (debtor in possession) lender.
DIP Loans Can Be...more
There is great fear and uncertainty in the market. Retailers and restaurateurs have been reeling from the inability to serve customers. Curbside pickup and home delivery do not compensate. Oil and gas bankruptcies also are...more
Borrowers should not be surprised when their lender requests a “checkup,” financial review, or audit.
Lenders are nervous. Despite long-term institutional relationships with customers, many banks are seeking to reduce...more
8/12/2020
/ Audits ,
Banking Sector ,
Banks ,
Borrowers ,
Chapter 11 ,
Collateral ,
Coronavirus/COVID-19 ,
Financial Institutions ,
Financial Planning ,
Forbearance Agreements ,
Hospitality Industry ,
Insolvency ,
Lenders ,
Loans ,
Perfected Security Interest ,
Risk Assessment
With COVID-19 having shut down many businesses, lenders increasingly are worried about their borrowers’ ability to repay loans. Lenders are concerned about the value of their collateral because of the loss of the spring...more
6/11/2020
/ Borrowers ,
Collateral ,
Coronavirus/COVID-19 ,
Financial Distress ,
Lenders ,
Loan Agreements ,
Midsize and Large Business Loans ,
Participation Agreements ,
Recharacterization ,
Small Business Loans ,
Subordination
Periods of uncertainty and distress create many questions that businesses must answer. Will they have the human resources and materials with which to produce goods and perform services for your customers? Will their customers...more
Many borrowers already have drawn down much or all of their available credit line in order to have the liquidity to ride out the COVID19 pandemic. Other borrowers are contemplating doing the same.
It may be too late....more
At the moment, the bankruptcy court may be an unfriendly place for impatient lenders.
As the United States and much of the world reel from the coronavirus pandemic, many businesses’ revenues have been shut off (or close to...more
4/7/2020
/ Borrowers ,
Chapter 11 ,
Commercial Bankruptcy ,
Coronavirus/COVID-19 ,
Creditors ,
Debtors ,
Financial Distress ,
Landlords ,
Lenders ,
Tenants ,
Unsecured Debt
A company commences a Chapter 11 bankruptcy case, obtains “debtor in possession” financing and then asks its vendors for more unsecured credit because (according to the debtor) the debtor just got lots of new financing and...more
3/4/2020
/ Administrative Bankruptcy Claims ,
Chapter 11 ,
Commercial Bankruptcy ,
Credit ,
Creditors ,
Debtors ,
Debtors-in-Possession ,
Financing ,
Lenders ,
Proof of Claims ,
Reorganizations ,
Reservation of Rights ,
Secured Debt