Richard Kohn and Jonathan Cooper, both principals in the firm’s Commercial Finance Group, will present “Shoring Up Distressed Cross-Border Loans” at the American Bar Association Business Law Section’s spring meeting on April 22, 2010, in Denver.
As a result of the recent economic crisis, loan portfolios throughout the country are riddled with distressed loans. Many of these distressed loans involve a cross-border element. A borrower may have significant assets located outside the United States, may have valuable foreign subsidiaries, or may simply sell to customers located outside of the U.S. While the foreign assets and subsidiaries may have substantial value, liens on foreign assets and guaranties from foreign subsidiaries often were not required when these loans were first made due to cost, tax or other considerations.
Once a loan becomes distressed, the need for foreign credit support should be reconsidered. In their presentation, Richard and Jonathan will discuss in detail ways to “shore up” distressed loans by supplementing them with liens on available foreign collateral and foreign guaranties, and will include a detailed discussion of applicable foreign secured transactions and insolvency laws.
Richard Kohn and Jonathan Cooper practice in the field of cross-border finance, and have written and lectured extensively on the subject. Richard Kohn is also Co-General Counsel of the Commercial Finance Association and is currently serving on an expert group assisting the United Nations Commission on International Trade Law (UNCITRAL) in the area of secured transactions. Jonathan Cooper also has worked extensively with UNCITRAL on secured transactions projects and is the Vice-Chair of the American Bar Association Subcommittee on Cross Border and Trade Finance.