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Workout & Bankruptcy Series

Be Prepared for What Comes Next

Our economy has been enjoying an upswing for so long that workout and bankruptcy training has not been a top priority for most lenders. Unfortunately, with the global disruption caused by COVID-19, now is the time to prepare for the next down-cycle.  Understanding the fundamentals of workouts and bankruptcies are necessary skills that every lender should have a working knowledge of. Are you ready?

To prepare secured finance professionals for managing distressed credits and understanding workout strategies, SFNet has developed a new education series that takes a deep dive into this timely topic.

Pricing Series Bundle (includes all 5 modules)
$380 Member Price
$520 Non-Member Price

Pricing Single Module
$95 Member Price  
$130 Non-Member Price

 

Workouts:

Preparing for a Workout

Instructor: Marshall Stoddard, Partner, Morgan Lewis

As a workout of an ABL loan emerges, what are the initial steps to be taken by the portfolio team:

  • Is there a default?
  • Are we in dominion?
  • Where are we on availability/dilution/collateral values/general creditworthiness?
  • Review the credit request and approval.  Are there variances from it? Is this a company problem or endemic to its industry?
  • What was the initial exit strategy? Has it changed? What are the alternative strategies, both legal and business?
  • Is there any wrongdoing?
  • Assessment of management under the circumstances?
  • Is there the need for a legal review?
  • Develop a long-term strategy before taking short-term steps.
  • Get the portfolio team and all decision makers on board with the strategy.

Management of Distressed Credits

Instructor Don Rothman, Partner, Riemer & Braunstein

  • We will be exploring the following topics at a level geared for loan officers who have not been through an economic downturn previously:
  • We will discuss what a workout actually is, and the different types of defaults and/or events that can cause a loan to be considered a "workout," particularly in the age of COVID-19.
  • We will discuss the basic steps to handling a workout, including due diligence, identifying the lender's goal/strategy, notices, forbearance and modification agreements and enforcement of rights.
  • We will cover some common pitfalls for loan officers to be aware of.
  • We will cover some basic rules to avoid lender liability.

Workout Budgeting

Instructor: Pat Diercks, Partner, Clear Thinking Group

This discussion will introduce the 13-week cash flow and liquidity forecast as a fundamental component of projecting/monitoring both company operating performance and collateral values while the borrower is in workout, including:

  • Critical components in the preparation of a 13-week cash flow and liquidity forecast
  • Validation and ‘testing’ of projections for reasonableness
  • Key company operating metrics
  • Borrowing base metrics
  • Risk mitigation/collateral protection steps
  • Sensitivity analysis to project risk profile

Bankruptcies:

Bankruptcy Fundamentals for Lenders

Instructor: Don Rothman, Partner, Riemer & Braunstein

This discussion will introduce you to critical bankruptcy concepts like the automatic stay that prevents all enforcement efforts upon the filing of a bankruptcy, the requirement that debtors provide lenders with adequate protection for the use of their collateral during a bankruptcy case, and how a debtor’s attempt to cram down a plan of reorganization over a lender’s objection. It will also provide answers to the following questions that lenders face in a borrower’s bankruptcy:

  • What are borrowers hoping to accomplish with a bankruptcy and how will those goals affect your loan and the underlying collateral?
  • What are the key disputes lenders face at the outset of a bankruptcy and in the plan confirmation process?
  • What litigation risks do lenders face in bankruptcy?
  • What steps can you take now to put your loan and underlying collateral in the best possible position in advance of a bankruptcy filing?

Creating a DIP/Bankruptcy Budget

Instructor: Pat Diercks, Partner, Clear Thinking Group

Chapter 11 cases come in many shapes and sizes and involve companies in every industry and sector of the economy. A key component common to nearly every bankruptcy case: developing an acceptable budget that will serve as the lifeblood of estate administration. We will discuss the transition of a 13-week cash flow and liquidity forecast into a DIP budget and the necessary considerations specific to bankruptcy, including:

  • Intended outcome of the filing (liquidation, reorganization, 363 sale)
  • Timing/priority order of payments post-petition
  • Collateral monetization
  • Carve outs for professional fees and other administrative expenses

Bundle:

Get the Full Series

Purchase all 5 modules in the SFNet Workout & Bankruptcy Series:

  • Preparing for a Workout
  • Loan Officers Workout Playbook
  • Workout Budgeting
  • Bankruptcy Fundamentals for Lenders Operating in a Turbulent Climate
  • Creating a DIP/Bankruptcy Budget

Series bundle offers a significant discount over the single session price:

Cost is $380 for Members and $520 for Non-Members vs. $95-$130 for each course in the series

 

All training modules are on-demand and feature bankruptcy attorneys and turnaround professionals who delve into highly relevant, real-world examples. Class participants will have access to instructors to ask specific questions via SFNet’s online discussion group.