Description
Gain valuable insight on options and issues surrounding restructuring commercial loans.Understanding how, when, and why to restructure a commercial loan is imperative for any business’s success. Loan restructuring can provide several benefits to borrowers who are struggling to make their loan payments, benefits include lower monthly payments, lower interest rates, and avoiding default. Understanding the options available to a business will enable professionals to guide the business on the right path to navigating its financial viability.
Date: 2023-09-21 Start Time: End Time:
Learning Objectives
How Debt Restructuring Works
• First Step Is Recognizing There Is a Problem
• Cash Is King.
• Selecting the Right People: Attorneys, Management, Other Professionals
• Reworking an Existing Debt to Better Fit Current Financial Picture
• Restructuring Typically Happens in Two Scenarios: Troubled Business Debt and General Business Debt
• Debt Restructuring Process Typically Involves Getting Lenders to Agree to Reduce Interest Rates and/or Extend Maturity Dates on Loans.
• Benefits Both Company and Lender (If Bankruptcy Is Avoided)
• Different Tools to Restructure Debts Including Debt for Equity Swap, Merger or Sale.
Determine the Restructuring
• Pinpoint Issue That Is Preventing the Business From Performing Well
• Where Will Restructuring Have the Highest Impact
• Calculate
• Negotiate
General Debt Restructuring V. Trouble Business Debt Restructuring
• General Restructuring Process Does Not Incur Any Losses to the Creditor
• Trouble Business Debt Restructuring
• Be Aware of Guaranty Obligations
• Cash Is King
• Tax Considerations
Financing Options for Restructuring Business Debt
• Business Term Loan
• Business Line of Credit
• SBA Loans
Debt-For-Equity Swap
• Occurs When Creditors Agree to Cancel a Portion, or All, of a Companys Outstanding Debts in Exchange for Equity
• Usually Preferred When Both Outstanding Debt and Companys Assets Are Significant and Forcing Business to Cease Operations Would Be Counterproductive as Better as Ongoing Concern
• Examples
CLE (Please check the Detailed Credit Information page for states that have already been approved) ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Kirk B. Burkley, Esq.-Bernstein-Burkley, P.C.
