Commercial Forbearance Agreements

Summary

This practice note discusses the role of forbearance agreements and other loan modifications which may be made to address a distressed loan. Transactions involving modifications made in response to a distressed loan are often referred to as a loan workout. This practice note discusses advantages and risks of entering into a forbearance agreement and other important considerations from the perspective of both the lender and borrower, as well as, key provisions to consider when drafting forbearance agreements.