News & Analysis as of

Default Risk Management

Shipman & Goodwin LLP

A Borrower Defaulted: Now What? Your Critical First Steps

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When a borrower defaults under a loan agreement, you face a dual challenge: time pressure demands swift action, while legal complexities require precision. Whether confronting missed payments, breached financial covenants, or...more

Holland & Knight LLP

Litigating Commercial Lease Terminations, Part 1 of 2: Landlord's Perspective

Holland & Knight LLP on

Commercial leases are a critical source of income and financial stability for property owners, but the current evolving economic environment presents many risks. One of the primary concerns is when a tenant falls behind on...more

Goodwin

Debt Download - May 2023

Goodwin on

Welcome to Debt Download, Goodwin’s monthly newsletter covering what you need to know in the leveraged finance market. We hope you are enjoying the Spring weather! Note: Some of the links in this newsletter may redirect...more

Kerr Russell

Back In The Deep End – Managing Risk In Uncertain Times

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While none of the current economic data indicates an imminent recession, we need look no further than the financial conditions of 2006 and 2007 to see how quickly the tide of the economy can shift. Warren Buffett once...more

Foley & Lardner LLP

The Future of Venture Debt

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Cash is the lifeblood of any business. Venture-backed companies without a financial history or proven track record are often unable to qualify for a more traditional loan with a big bank. Historically, venture-backed...more

Bilzin Sumberg

Corporate Debt: Still Growing, and Still a Concern

Bilzin Sumberg on

As the pandemic began unfolding about a year ago, we wrote about the risk that the high volume of corporate debt might make it the next market bubble to burst. The issuance of corporate debt only accelerated in 2020 compared...more

Dorsey & Whitney LLP

Current Bank Capital and Enforcement Action Considerations

Dorsey & Whitney LLP on

Because of the devastating effect that the COVID-19 pandemic has had on the entire U.S. economy, the federal Bank Regulators have warned of the possibility that small, medium and large banks may soon be forced to recognize...more

Winstead PC

Administering Trusts in Recessions: Trust Loans to Beneficiaries

Winstead PC on

Beneficiaries often request that a trustee make them a loan from trust property. In an economic downturn, such requests are even more prevalent. As a general rule, a trustee should not want to make a loan to a beneficiary as...more

Robins Kaplan LLP

Collateralized Loan Obligations: Emerging Litigation Risks

Robins Kaplan LLP on

I. Introduction - Financial experts are forecasting significant increases in borrower defaults on leveraged loans held in collateral loan obligations (“CLOs”). From the ashes of these defaults will arise litigation similar...more

White & Case LLP

High yield bonds: know your numbers

White & Case LLP on

The coronavirus pandemic has had an unprecedented impact on many businesses, including those with outstanding high yield bonds. The incurrence covenant regime (and absence of any maintenance covenants) means that, provided...more

Chambliss, Bahner & Stophel, P.C.

The Balance Between Risk Management and Client Relations

As businesses fight through the tough times created by the pandemic and government restrictions that impact their operations, it is imperative to be mindful of the situation your customers face, especially if you extend...more

Sheppard Mullin Richter & Hampton LLP

Dealing with the Financial Impact of the Coronavirus

With the continuing spread of the Coronavirus Disease 2019 (“COVID-19” or “coronavirus”), hospitality service providers are facing a number of issues that have already exacted a heavy financial toll. With consumers staying...more

White & Case LLP

Sanctioned default? The English High Court considers the effect of foreign illegality on English obligations

White & Case LLP on

As sanctions ramp up globally, it is increasingly important for commercial parties engaged in cross border transactions to have certainty (i) as promisees (e.g. lenders) as to when their counterparties may legitimately avoid...more

Orrick, Herrington & Sutcliffe LLP

Orrick's Financial Industry Week In Review

Financial Industry Developments - The CFPB Publishes Final Rule for Prepaid Accounts - On October 5, 2016, the Consumer Financial Protection Bureau (the "CFPB") finalized comprehensive consumer protections for...more

Katten Muchin Rosenman LLP

CFTC Issues Final Rules for SIDCOs

The Commodity Futures Trading Commission issued new risk management standards for systemically important derivatives clearing organizations (SIDCOs). Pursuant to CFTC Regulation 39.11, a derivatives clearing organization...more

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