Commercial Loan Defaults: Waivers, Workouts, and Amendments

In the current economic environment commercial loan defaults are expected to accelerate. When a default exists your bank may agree to a renewal, extension or significant modification to the loan as the solution. This program will cover guidelines for the Bank in a workout situation, including the documentation to consider before, during and after negotiations take place with borrowers and guarantors. Assessing lien positions and likely recoveries in bankruptcy and in the absence of a workout will also be discussed. Practical information for daily use will be provided.

Covered Topics

• Defaults Prior to and at Maturity
• Acceleration of Debt
• Guidelines for Workout Negotiations
• Workout Due Diligence Checklist
• Assessing Your Lien Position and Likely Recovery Absent a Workout
• Subordination and Intercreditor Agreements
• Lender Liability Issues
• Temporary Waivers and Amendments
• Documenting Renewals, Modification and Extensions
• Pre-Workout Agreements
• Workout Agreements, Loan Restructuring Agreements and Forbearance Agreements
• Effect of Section 4013 of the Stimulus Package on Loan Modifications
• Tax Issues and COD Income
• The Basic Business Bankruptcy Framework: Chapter 7 and Chapter 11
• The Small Business Reorganization Act of 2019 and New Temporary Increased Debt Limits

Who Should Attend
This program is designed for all commercial lenders, collections and problem loan personnel, and their support staff.

Instructor Bio
Robin Russell has practiced law for 30 years and is licensed in Texas, New York, and Massachusetts. She is a fellow in the American College of Bankruptcy and of the American Law Institute. She combines a depth of experience in bankruptcy restructuring and litigation with financial transactions. She has represented corporate debtors, independent directors, liquidating trustees, bondholders, unsecured creditors’ committees, bank groups, private equity funds, landlords, trade creditors, and bidders for estate assets in Chapter 11 and Chapter 7 bankruptcy proceedings. She has also represented banks, institutional lenders, and corporate borrowers in commercial loan transactions and debt restructurings.

Russell is the principal author of Thomson Reuters’ Texas Practice Guides for both Creditors’ Rights and Financial Transactions and the Texas Bankers Association’s Texas Secured Lending Guide, Texas Problem Loan Guide, Texas Real Estate Lending Guide, and Texas Account Documentation Guide. She is a frequent speaker on banking, bankruptcy, and financial restructuring-related topics and has served as a Chapter 7 Trustee. Robin received her LL.M. in Banking Law from Boston University and her J.D. from Baylor University where she was Editor-in-Chief of the Baylor Law Review and the highest-ranking graduate in her class. She clerked for the Texas Supreme Court before beginning her legal career.

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