The panel discussion will include agency resignations, loan mechanics, internal compliance, and regulatory considerations, as well as general strategies to identify and address these traps.

The restructuring of, and transactions related to, distressed loans often involve exceedingly complex execution strategies, particularly with syndicated credit facilities. Failure to address implementation and execution may negatively impact the positions of all stakeholders.

Common issues that can cause unanticipated delays in a liability management transaction include agency transfer logistics; consideration of the mechanics needed to reduce or terminate revolving commitments and loans; consideration of the treatment of letters of credit in connection with refinancings; and regulatory and internal compliance considerations related to ESG, AML, and KYC that may arise.

Listen as our authoritative panel discusses these and other pitfalls to avoid when entering into a loan restructuring transaction, including:

1. Why distressed credits are particularly subject to pitfalls

   1. Issues with implementation of complex negotiated structures

   2. Minority lenders, small holders, and agents may not participate in structuring discussions

   3. Manual processes or approvals required internally by parties

2. Common issues regarding lenders and administrative agents and when agents cannot fulfill duties to all constituencies

3. Rebalancing of facilities and facility exchanges

   1. Implications for paydowns or reductions of revolving facilities

4. Consideration of the treatment of letters of credit in a refinancing

5. Regulatory and internal compliance issues

   1. KYC and AML attributable to new parties or new deposit accounts required for implementation of the transaction

   2. Environmental, social, and governance (ESG) policies

   3. Flood Insurance and other environmental approvals related to real estate

The panel will review these and other vital issues, including:

• Why is an administrative agent more likely to resign and be vulnerable to removal in a distressed credit, and how might that affect a restructuring of the loan?

• When should minority stakeholders and other parties be included in the restructuring process, and how can their absence impede the transaction?

• What are strategies to increase the likelihood of a smooth execution?