Even in the earliest phases of a workout or restructuring, our attorneys help clients think ahead and develop alternative strategies when deals show signs of distress. Our attorneys possess the necessary know-how to position a workout for out-of-court resolution, yet are ready to take the client’s case into the courts, if necessary.
Our attorneys guide clients through the commercial workout and financial restructuring process, including advising lenders and trustees of their rights and remedies under loan documents, credit agreements, note purchase agreements, pooling and servicing agreements, trust agreements, indentures, aircraft leases, equipment leases, servicing agreements, ISDA derivative transactions, and other loan documents.
Documentation and Perfection Review/Analysis
When it appears a transaction is in trouble or distressed, our attorneys understand the potential issues and problems that may arise. A review of our client’s documentation and perfection of its collateral may prevent or reduce these problems should a bankruptcy filing or other court proceeding be initiated later.
We negotiate and document forbearance agreements to address various issues, including foreclosure, default, amounts due, counterclaims, taxes, assignment of rents, interim payments, and business restructuring.
Chapman understands bankruptcy and foreclosure proceedings can cost time and money, so our attorneys endeavor to find more efficient remedies by counseling on how to modify terms to benefit all parties involved. We counsel creditors in their negotiations and dealings with other lenders; junior, subordinated, or second-lien lenders; equity interests; swap counterparties; and other interested parties and stakeholders. We also provide our clients with bankruptcy law analyses for opinion letters and proposed deal structures.
We advise on whether a debt-for-equity solution is the best approach to resolving a troubled financial situation. If the preemptive measure is the only alternative, Chapman will advise on the proper structure to preserve our client’s holdings while allowing the distressed organization to continue operations.
Assignments for the Benefit of Creditors (“ABC”)
Chapman attorneys represent creditors in assignments for the benefit of creditors proceedings. In addition, we assist corporate and indenture trustees with the wind-down of trusts and liquidation of trust assets upon trust termination.
Chapman attorneys are ready to assist when the foreclosure process is available without court oversight, providing counsel on proper procedures, strategies, and possible liabilities. Our attorneys also have extensive experience in the enforcement of secured creditor rights arising under the Uniform Commercial Code (“UCC”) and have been involved in the disposition of real property collateral through foreclosure proceedings or deed-in-lieu transactions and the public or private disposition or strict foreclosure of personal property collateral under Article 9 of the UCC.
- Represented secured lenders in connection with the negotiation and workout of loans related to multiple farming and other agricultural‑related businesses.
- Assisted with a debt‑for‑equity swap on behalf of an agent in a syndicated facility to an after-market auto‑parts manufacturer.
- Assisted with multiple forbearances and negotiations with an equity sponsor of a food‑products business on behalf of a secured lender, resulting in full repayment.
- Negotiated a successful out-of-court restructuring on behalf of an agent in a syndicated loan facility to a food storage and warehouse business.
- Represented bondholders in non-judicial foreclosures of numerous aircraft used by United Airlines and American Airlines in relation to their respective chapter 11 cases.
- Represented an agent bank in connection with forbearances and amendments to restructure loans to a medical equipment manufacturer.