Insights
Events

Equitable Subordination and Recharacterization of Loans: Avoiding Pitfalls for Lenders, Creditors, and PE Sponsors

March 4, 2020 10:00am11:30am
Gary M. Kaplan

Gary Kaplan is speaking on the Strafford live webinar, "Equitable Subordination and Recharacterization of Loans: Avoiding Pitfalls for Lenders, Creditors, and PE Sponsors."

This CLE webinar will offer best practices for counsel to lenders, creditors, and private equity sponsors to structure transactions and lending practices to protect their claims and maintain their priority status against junior and unsecured creditors or borrowers facing insolvency or bankruptcy.


Details:
Junior or unsecured creditors often assert equitable subordination and recharacterization claims against secured creditors in order to enhance recovery from highly leveraged debtors. When addressing the liquidity of their portfolio companies, PE sponsors are vulnerable to attacks on their claims.

Recharacterization claims usually involve insiders like stockholders, directors, and officers. However, the doctrine is not limited to corporate insiders, and courts will scrutinize both the debt instrument and the creditor's status.

Both doctrines are heavily litigated with recent cases that reflect the continued inconsistency among circuit courts and differing standards used among courts to scrutinize various loan transactions.

Listen as our authoritative panel of bankruptcy attorneys discusses the looming threats of equitable subordination and recharacterization in bankruptcy and how lenders, creditors, and PE sponsors can minimize exposure and protect their claims.

Click here for more information.

Firm Highlights

Publication

I Always Feel Like AI Is Watching Me: Artificial Intelligence and Privacy

ChatGPT got the early press, and every day we learn of new generative artificial intelligence products that can create new and creative visual and text responses to human input. Following on ChatGPT’s fame, Google’s...

Read More
News

Aviva Gilbert Named a Leadership Council on Legal Diversity Fellow

Aviva Gilbert Headshot at Farella Braun + Martel
Read More
News

WhatsApp and Facebook Take the NSO Group to Court

Kyle McLorg was interviewed for the  Shoot The Messenger: Espionage, Murder, & Pegasus Spyware  investigative podcast episode “WhatsApp and Facebook Take the NSO Group to Court” produced by Exile Media in collaboration with The...

Read More
Event

23rd Annual Wine Industry Conference

Farella Braun + Martel is a Presenting Partner of the  North Bay Business Journal' s 23rd Annual Wine Industry Conference. The conference will explore new trends and challenges to the wine industry in the North Bay. Farella's Richard...

Read More
Event

The Fine Print: A Litigator’s Perspective on Boilerplate Contract and Insurance Provisions

Join Carly Alameda and Amy Briggs in the discussion on "The Fine Print: A Litigator’s Perspective on Boilerplate Contract and Insurance Provisions" to the ACC Bay Area Chapter. Corporate counsel are often tasked with negotiating...

Read More
Event

The Fine Print: A Litigator’s Perspective on Boilerplate Contract and Insurance Provisions

Join Carly Alameda and Amy Briggs for the ACC Bay Area Chapter program "The Fine Print: A Litigator’s Perspective on Boilerplate Contract and Insurance Provisions."  Corporate counsel are often tasked with negotiating, finalizing, and managing...

Read More
Publication

Hot Topic: UPMIFA in the Context of Financial System Instability

Welcome to  EO Radio Show – Your Nonprofit Legal Resource . A really hot topic this week is the duty of care for directors and trustees of charities in a time of volatility in...

Read More
Publication

Nonprofit Basics: Best Practices for Approving Insider Compensation Decisions

Welcome to  EO Radio Show – Your Nonprofit Legal Resource . This episode is the third in a series discussing insider transactions by exempt organizations. In this episode, I'll look closely at best practices...

Read More
News

Profile in Women Leadership - Mary McCutcheon

Mary McCutcheon Headshot
Read More
Publication

Nonprofit Basics: Conflict of Interest Policies and Best Practices for Approving Insider Compensation

Welcome to  EO Radio Show – Your Nonprofit Legal Resource . This episode is the second in a series discussing insider transactions. In episode 32, I gave a general overview of the federal laws...

Read More