The lender side of asset-based loan deals requires protecting against uncertainty, especially concerning the future financial health of borrowers and counterparties. This uncertainty can be compounded by the nature of the financing structures implemented, and by the ever-increasing need to protect against financial fraud.
Our Bankruptcy, Creditors’ Rights + Finance group represents banks and other financial institutions in both large-scale, sophisticated loan transactions, and smaller, more routine credit facilities — including revolving loans, term loans, loan purchase agreements and warehouse facilities. We have extensive experience in subprime lending and origination platforms, as well as long relationships with originators, servicers and other third parties.
Strong Protections, Remedies and Practical Solutions
Lenders and servicers in areas such as residential and commercial mortgages, autos, fintech and student loans, and commercial borrowers spanning a variety of industries — including cannabis, advertising and marketing, PR and energy — know of our deep knowledge of lending, acquired through long experience in asset-based lending, real estate financing, and subprime mortgage. On the lender side, clients rely on us to formulate deal structures that afford strong protections against both insolvency and fraud by counterparties and remedies tailored by industry for maximum effect. Often, this requires particular knowledge of emerging issues, for example, the specific challenges and legal exposure of lending to cannabis-related businesses. On the borrower side, clients look to us to take a practical approach, balancing the protections lenders expect against the flexibility and autonomy they need in order to operate.
Our lending practice dovetails closely with our representation of creditors, both in debtor bankruptcies and in subsequent litigation. Many of our clients have seen their loans go through all three phases — transaction, bankruptcy, litigation — with our group guiding them at every turn. When a debtor’s fortunes change, we restructure contracts and implement legal strategies to enhance our clients’ position, while guarding against legal exposure.
Our experience extends to representing clients in transactions to fund their lending platforms and operations. We go beyond traditional revolving credit facilities and term loans, to areas such as mortgage loan warehouse financing, inventory financing, receivables purchase arrangements and derivative transactions.