Borrower in Distress? A Toolboxfor Secured Lenders
A borrower in financial distress raises a number of concerns for a secured lender. It is critical for the secured lender to be proactive and quickly develop a plan to help maximize its recovery and limit its exposure. This article provides secured lenders critical action items they should consider when one of their borrowers is in financials distress. It also provides detail regarding key areas that a collateral review may need to cover and key provisions of the loan documentation that should be reviewed and possibly revisited in light of the situation.