Arren Goldman a Panelist for Strafford Webinar "Early Stages of a Commercial Loan Workout: Pre-Negotiation Agreements and Other Key Considerations"

Arren Goldman, partner in Seyfarth's Real Estate department and co-lead of the firm's Distressed Situations team, is serving as a panelist for the Strafford webinar "Early Stages of a Commercial Loan Workout: Pre-Negotiation Agreements and Other Key Considerations" on May 5, 2022.

After a loan default has occurred, both sides must assess the extent and materiality of the default(s) and consider next steps, such as default notices and potential exit strategies. Additionally, counsel may need to conduct a thorough review of the loan file to identify potential documentation issues and to confirm that security interests are properly perfected in the loan collateral. The panel will discuss these initial considerations.

From the start of workout negotiations, both sides may be exposed to a variety of risks. Often these risks can be mitigated by entering into a pre-negotiation agreement which allows the parties to engage in workout discussions while preserving certain rights if no forbearance or loan modification agreement is reached.

Accordingly, the panel will discuss pre-negotiation agreements, including how they can be used by borrowers, guarantors, and lenders to protect themselves. The panel will also discuss key provisions that may be incorporated in a pre-negotiation agreement and the enforceability of such agreements.

Listen as our authoritative panel discusses pre-negotiation agreements and other considerations early on in the workout process, as well as other important issues, such as:

• How does the concept of materiality figure into a lender's decision on whether to pursue remedies against a borrower?
• What due diligence steps should counsel take before engaging in workout discussions?
• When is a pre-negotiation agreement appropriate for a given transaction?
• What are the potential benefits for each side of a pre-negotiation agreement?
• After a pre-negotiation agreement is executed, what comes next?