Restructuring the Commercial Loan

On Demand Course

Instructor: Kirk Burkley

Duration: 1 HR

What You'll Learn

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.

About the Author:

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