Aug 04, 2020
Eric Anderson, partner at Parker Hudson, and Doug Lipke, partner at Vedder Price, will be presenting "DIP Financing: Structuring Roll-Overs, Cross-Collateralization, Priming Liens, Junior DIP Financing, and More," on October 29 for Strafford CLE.
This webinar will cover the challenging issues in debtor-in-possession (DIP) financing that are most often the subject of contentious negotiations between DIP lenders and other secured creditors, as well as the subject of intense scrutiny by bankruptcy judges. Eric and Doug will discuss, in detail, how DIP financing is often subject to an evolving list of conditions by lenders to limit the risks of post-petition financing. Challenging terms include roll-overs and roll-ups, cross-collateralization, priming liens, and super-priority claims on avoidance actions. Pre-petition lenders often seek releases from the debtor regarding the validity, priority and amount of the pre-petition claims, and a release of defenses. Other terms include carve-outs, liens on avoidance actions, Section 506(c) waivers, and waiver of the automatic stay.
They will also discuss one of the ABI Commission's proposals for Chapter 11 reform which seeks to reduce the level of control secured lenders have in Chapter 11 cases and give more power to debtors and junior creditors, including possibly limiting the impact of inter-creditor agreement provisions that make it difficult for junior secured creditors to offer competing DIP financing. Courts, therefore, are more mindful of secured creditor overreach and more willing to question lender demands.
- Rollover of pre-petition secured debt
- Priming liens
- Liens or super-priority claims on avoidance actions
- Releases and waivers of challenges to liens and other future borrowings
- Section 506(c) waivers
- Junior DIP financing
- "Carve-out" for professional fees
- ABI Commission recommendations for reforms impacting DIP financing
More information and registration can be found here.