Restructuring After Bank Failure
After a Bank Failure: 10 Things Borrowers Should Consider
Source: nreionline.com
"As banks fail and pro formas are revised again, business borrowers eager to restructure their debt often find that their loans are no longer held by the originating or "relationship" banker. Instead, a new lender holds their loans: either the FDIC as receiver for the failed bank, or a joint venture partnership between the FDIC and a private equity firm.
We often represent the new lenders involved in these restructurings. Drawing on our experience with many successful commercial loan restructurings and many more attempted ones, here are 10 things borrowers and guarantors should keep in mind when approaching their new lender. Some are common to any restructuring, while others are unique to loans formerly held by a failed bank. "
All things I did not know. I am not as involved with owners as I want to be in the future. I still am in a position that I work with my Regional Director and she works with the owners. This is good to know so that when I do get in that position I will know these things.
- Brian Kays | Flag this comment for review