On Demand Course

Restructuring the Commercial Loan

Gain valuable insight on options and issues surrounding restructuring commercial loans.

Learning Objectives

After completing this course, attendees will be able to:

  • Review how debt restructuring works.
  • Explain where the restructuring will
    have the highest impact.
  • Discuss tax considerations.
  • Identify financing options.
Kirk Burkley 1 HR
Included with Team Membership

About This Course

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.

Agenda

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 Company’s Outstanding Debts in Exchange for Equity
  •  Usually Preferred When Both Outstanding Debt and Company’s Assets Are Significant and Forcing Business to Cease Operations Would Be Counterproductive as Better as Ongoing Concern
  • Examples

 

*This program does NOT qualify, nor meet the National Standard for NASBA accreditation. 

 

Your Instructor

Kirk Burkley
Kirk Burkley

Kirk B. Burkley, Esq.
• Managing Partner of Bernstein-Burkley, P.C.
• Practice emphasizes all aspects of bankruptcy and restructuring, creditors’ rights, business and corporate transactions, litigation, real estate, and oil and gas
• Conducts regular seminars, live webinars, and workshops on bankruptcy, creditors’ rights, and oil and gas
• Author of several publications related to the bankruptcy field, with work appearing in the ABI Journal, Equipment Leasing Newsletter, Pennsylvania Association of Credit Managers Newsletter The Creditor, and more
• Chair of the CLLA Bankruptcy Section Executive Council, past president of the American Board of Certification, past president of the Turnaround Management Association, member of the Allegheny County Bar Association, and the American Bankruptcy Institute
• J.D. Degree, University of Pittsburgh School of Law; B.S. degree, Ohio University
• Can be contacted at kburkley@bernsteinlaw.com
or 412-456-8108

Training your team?

This course is covered under team memberships.

See Team Memberships
Buying for yourself?
$ 99
Included with Team Membership
Training your team?

This course is covered under team memberships.

See Team Memberships
$ 99
per attendee