Representing the Lender in a Workout


Summary

This practice note discusses counsel's representation of a lender in a business workout. A lender's perspective on its borrower's workout will necessarily be different from that of the company or its directors. And in fact, the perspectives of different lenders will vary based on a number of factors, including whether the lender originated the loan or purchased it in the secondary market at a discount and the lender's views of the risks and opportunities inherent in the particular company and its financial situation. Generally common to all lenders, however, will be an interest in loss mitigation.