February 2, 2017
Authored by: Justin Sabin and Bryce Suzuki
While significant energy here at the Bankruptcy Cave is devoted to substantive bankruptcy matters, not all aspects of a general insolvency practice are always fun and litigation. Oftentimes insolvency lawyers add the most value by helping clients avoid a bankruptcy filing, or by successfully resolving a case through a consensual transactional restructuring. Below are a few key issues diligent counsel for creditors and debtors should think through in connection with a transactional restructuring.
1. Notice and Demand After Default. As anyone reading this knows, a lender often sends a notice of default and maybe even a demand for payment after its borrower defaults. However, simply sending a notice of default and demand for payment may not always be sufficient or have the intended effect. Most loan documents provide a cure period before a breach becomes an actionable default. Some loan documents will only permit a lender to accrue