6-Hour Program

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Overview

Why You Should Attend

Asset based financing is a key source of credit for small and medium-size companies and for some larger, publicly traded companies as well. In contrast to equity financing where ownership in the company is diluted, asset-based financing allows companies to borrow funds against their own assets as collateral to generate cash for working capital and capital acquisitions without disturbing equity ownership.

 In structuring these loans, asset-based loans are at the top of the company’s capital structure.  The loans enjoy that priority and are generally priced on that basis, because lenders rely on their collateral as their ultimate source of payment.  Accordingly, lenders and their counsel must consider all senior interests in the collateral, as well as the practical difficulties in obtaining payment in enforcement situations. Not only is a sound knowledge of the law required but also practical knowledge of the common drafting and enforcement issues likely to arise.

At this program, our expert faculty will explore the most common forms of asset-based financing, and the legal rules governing them, with particular emphasis on Article 9 of the Uniform Commercial Code and the Bankruptcy Code. In addition, the faculty will share what they have learned in representing secured creditors and borrowers in structuring asset-based loans and in enforcing them inside and outside of bankruptcy. The faculty will also discuss a number of ethical issues that arise in asset-based financings.

What You Will Learn

• Brief review of the basic rules for attachment, perfection, priority and enforcement of a security interest under Article 9

• Common asset-based financing structures for equipment, inventory and receivables financing with emphasis on borrowing base formulations for working capital assets

• Priority issues relating to non-UCC liens

• Enforcement and bankruptcy planning strategies

• Trends in intercreditor arrangements and debtor in possession asset-based financing

• Non-uniform provisions under the New York UCC relevant to asset-based lending

• Cross-border asset-based financing issues

Special Feature:

• Earn one full hour of Ethics credit

Who Should Attend

The program is intended for attorneys and asset-based lenders already experienced in the field or seeking a general refresher or update. The program will review the basics of asset-based lending briefly before concentrating on more advanced issues and strategies.

Topics

Credit Details