News & Analysis as of

Loans Financial Distress

Proskauer Rose LLP

Private Credit Deep Dives – What to do following an Event of Default in a consensual setting (Europe)

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Over the past year, we have seen a significant increase in Events of Default (each, an “EoD”) arising from financial underperformance. This trend is largely driven by the high interest rate and inflationary environment, with...more

Morrison & Foerster LLP

Tips for Reducing Lender Liability Risk When Dealing with Distressed Commercial Real Estate Loans (Part 1)

A number of factors have combined to cause an almost “perfect storm” for commercial real estate distress. The COVID-19 pandemic led to a rise in remote and hybrid work, increasing vacancy rates and decreasing property values....more

Cadwalader, Wickersham & Taft LLP

Comet: The Court of Appeal provides timely guidance regarding unlawful preferences

Overview - The Court of Appeal has overturned the decision of the High Court in Carton-Kelly v Darty Holdings SAS, providing welcome clarity for directors of distressed companies when considering whether to make payments...more

Seward & Kissel LLP

Green Light for Yellow? No Christmas Miracle, Karma Chameleon, and MNK 22

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Apollo-Led Lenders Sell Yellow Loan to Citadel | Wall Street Journal - Apollo Global Management and other affiliated lenders have exited a $500 million loan with now bankrupt trucking company, Yellow. The loan was sold to...more

Sheppard Mullin Richter & Hampton LLP

Update to: A Lifeline Amidst Turbulent Times: California Lawmakers Approve Emergency Loans for Struggling Hospitals

As an update to our previous post, on Monday, May 15, 2023, California Governor Gavin Newsom signed into law Assembly Bill 112 (“AB 112”), which is designed to provide critical relief to qualified struggling hospitals across...more

Cadwalader, Wickersham & Taft LLP

No Need to Pretend – Just Extend – if Borrowers Ask to Delay Repayment

Today’s high interest rate environment presents a challenge to many commercial real estate borrowers whose loans are now reaching maturity. Some borrowers are unable to repay their loans, while others are approaching the loan...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Loans and hardships are on the downswing

Bank of America’s newest survey shows that at the end of 2022, fewer participants took hardship withdrawals and loans. Participants taking a hardship distribution declined in the fourth quarter of 2022, with the average at...more

Bradley Arant Boult Cummings LLP

Buying Distressed Operations in the Skilled Nursing Facility Space

The “Nursing Home Covid-19 Data Dashboard” maintained by the Centers for Disease Control and Prevention (CDC) shows that COVID-19 had an unusually intense impact on the long term care community. Cases among nursing home...more

Bradley Arant Boult Cummings LLP

Distressed Long Term Care Assets: A Lender’s Perspective

Loan defaults and financial distress among long term care (LTC) facilities, such as skilled nursing facilities (SNFs), assisted living facilities (ALFs) and memory care facilities, are on the rise. The COVID-19 pandemic has...more

Seward & Kissel LLP

Simply Speaking - May 2022: General Average

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Background - Almost a year to the day after the EVER GIVEN blocked the Suez Canal, making global headlines and focusing the general public’s attention on the world of shipping, bad news struck the EVER GIVEN’s parent...more

Proskauer - Health Care Law Brief

Diagnosing Distress: Top 5 Challenges for Private Credit Lenders in Health Care Restructurings

Despite the strength of the U.S. economy headed into the New Year, a variety of conditions may be conspiring against businesses in certain segments of the health care industry. These include reduced patient census at skilled...more

Morgan Lewis

When Is a Guaranty Claim Reduced by Recovery in a Debtor’s Bankruptcy Case?

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Consider a lender that extends a term loan in the amount of $1 million to an entity debtor. The loan is guaranteed by the debtor’s owner. If both the debtor and the guarantor become subject to bankruptcy cases, it is settled...more

Bradley Arant Boult Cummings LLP

Interplay of the Cares Act's Forbearance Framework and Regulation X's Loss Mitigation Rules

On March 13, 2020, President Donald Trump declared a national emergency in response to the novel coronavirus disease (COVID-19). Shortly thereafter, to assist consumers impacted by the COVID-19 pandemic, Congress passed the...more

Flaster Greenberg PC

What Does My Company Need To Know Before Acquiring Another Company In Financial Distress?

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We have been asked many times to assist a client in the purchase of another business that has been experiencing financial difficulties. While the purchase can be a significant advantage to your company, there are several...more

Herbert Smith Freehills Kramer

We Can Work It Out: Overcoming Obstacles to Real Estate Workouts

Real estate lenders and borrowers everywhere are trying to figure out what to do with properties that are either sitting vacant or underperforming pre-pandemic expectations. In New York, a number of mezzanine foreclosures...more

Opportune LLP

Path Forward: Borrowing Base Redeterminations In A Restructuring World

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How will oil and gas companies adapt to tightening bank loan requirements amid commodity price uncertainty and an ongoing pandemic going forward? Opportune Managing Director David Morris explains on the latest episode of...more

Williams Mullen

COVID-19 Comeback Plan: Part III - How Banks Think About Loan Defaults: Lessons for Borrowers in Troubled Times

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In the third installment of our video series aimed at helping borrowers in uncertain times, Matt Cheek, chair of Williams Mullen’s Financial Services Industry Group, and Mike Mueller, chair of our Restructuring, Bankruptcy...more

Williams Mullen

Williams Mullen's Comeback Plan: Part II - How Banks Think About Loan Defaults: Lessons for Borrowers in Troubled Times

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In the second installment of our video series aimed at helping borrowers in uncertain times, Matt Cheek, chair of Williams Mullen’s Financial Services Industry Group, and Mike Mueller, chair of our Restructuring, Bankruptcy...more

Foodman CPAs & Advisors

What do you do if you are a Financial Institution with COVID-19 Loan Accommodations near the end?

On August 3, 2020, the Federal Financial Institutions Examination Council (FFIEC)  issued a Joint Statement on Additional Loan Accommodations Related to COVID-19 regarding loans  that are near the end of an initial loan...more

Farella Braun + Martel LLP

Wine Businesses, Lenders, and Difficult Conversations

The COVID-19 pandemic and public health efforts to combat it will impact different wine businesses in different ways. Those that depend on on-premise and direct-to-consumer (DTC) sales, such as restaurant, hospitality, and...more

King & Spalding

Federal Reserve System Implements TALF 2.0 in Response to Coronavirus Disease 2019 (COVID-19) Crisis

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On March 23, 2020, the Board of Governors of the Federal Reserve System (the “Board of Governors”) announced the implementation of a new Term Asset-Backed Securities Loan Facility (“TALF 2.0”) in order to provide liquidity...more

White & Case LLP

Developing Markets: loan and commodity finance considerations at a time of vulnerability

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At a time of vast capital outflows (withdrawals from emerging markets in the period 21 January – 24 March were reported by the Institute of International Finance at $83 billion), commodity price falls and wider global market...more

White & Case LLP

Covid Corporate Financing Facility: further details released

White & Case LLP on

In our client alert entitled "Government-backed initiatives to support businesses impacted by the Coronavirus" we gave an overview of various measures announced by the UK Government to help UK business through the economic...more

Rivkin Radler LLP

NYS Offers Forbearance to Borrowers, NYC Allows Penalty Waivers

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On March 21, 2020, Governor Cuomo issued Executive Order 202.9, which is in effect through April 20, 2020. The order provides financial relief to consumers and businesses with outstanding bank loans....more

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