CONFERENCE DAY 1
CONFERENCE DAY 2

When Does A Loan Become A Workout

• Highly subjective
• One lender's bad loan is another's opportunity

Forms Provided
	Warning Letter regarding Termination Default Waiver Letter Notice of Default

Preliminary Steps In A Loan Workout

• Review of documentation
• Common documentation errors
• Is the loan committed?
• Guaranty issues
  • Spousal guarantees
  • Has guaranty been terminated?
• Lapses
• Changes in name
• Change in business form
• Sales of collateral
• Look for overdrafts in checking account or over-formula advances

Exhibit Provided
	What's In a Name

Objective Of The Loan Workout

• Protection of creditor's assets
• Maximizing payment of indebtedness
• Turning a bad loan into a good loan - making a profit on loan workout

Negotiating The Workout Agreement - This Is Where The Game Is Won Or Lost

• Importance of first meeting with debtor - CASH FLOW PROTECTION
• Use of a Pre-Workout Agreement
• Get waivers regarding disposition of collateral
• How to make earlier mistakes go away
• Don't forget - you are in this business to make money; the Workout Agreement will help
• Hiring guarantors to liquidate - it's not as dumb as it seems
• Anticipate and neutralize a subsequent bankruptcy
• How to negotiate for additional collateral
• Provisions to ensure debtor's and guarantor's cooperation
• Don't forget the preference risk
• Only give up interest and other concessions at the end
• Summary:
       Can forebear
       Extend debt
       Forgive debt
       Term out over formula

Forms Provided
	Pre-Negotiation Agreement Workout Agreement Neutron Bomb Provisions

Enemies Abound - How To Deal With Them

• Federal tax lien
• Federal tax levies
• How to get a subordination immediately from the Feds
• Intercreditor issues
• Dealing with participants

Forms Provided
	IRS "Interim Subordination Letter" Notice to Senior Secured Creditor Collateral Description for UCC-1

Tightening Control Over The Debtor

• Put accounts on notification - cannot stop funding without this
• Payroll service
• 30 day searches
• Form 8821
• Install "keeper" or "observer"

Form Provided
	Notice to Account Debtors

Remedies Upon Default

• In general
• The collection rights of the secured creditor
• The secured creditor's right to repossess
• Conducting the sale; The Do's and Don'ts
• Don't get stiffed by the auctioneer
• What happens if you blow it?
• Strict Foreclosure

Forms Provided
	Bill of Sale Consent to Private Sale

Priorities - Now it Matters

• Rights of the junior creditor
• Purchase money security interests - you'll be surprised who has the upper hand
• Judgment Creditors

• Assignment for the benefit of creditors
• Out-of-court settlement
• "Friendly" foreclosure

What Is A Bankruptcy Proceeding?  What Kinds Are There?  What's The Difference?

• Chapter 7; Purpose; How it works
• What the filing means to a secured creditor
• Preference issues
• Perfection issues
• Fraudulent transfer issues
• Relief from the stay and related enforcement issues
• Chapter 13
• What it is and how it works

Chapter 11 - Nothing To Fear; At Least Not Too Much

• How it works
• Effect on unsecured credit
• Filing petition without advising secured creditor
• Role of a creditor's committee
• Tactics - fight 'em or join 'em
• Attacking the bankruptcy
• Conversion or dismissal
• Appointment of a trustee or examiner

Financing The Debtor - How It Works

• How to cut a better deal than you had pre-petition
• Provisions to include in the financing order
• Use of debtor's budget; the importance cannot be overstated

Forms & Exhibits Provided
	Post-Petition Financing Order Liquidation Checklist Cash Collateral Order Bankruptcy by Cohen, Feinstein & Combest Bankruptcy Overview