Richard Kohn, a co-founder of Goldberg Kohn and a principal in the firm’s Commercial Finance Group, has authored "SFNet Submits Comments on Out-of-Court Workouts to Financial Stability Board," published in the August 24, 2021, edition of The Secured Lender.
The article concerns a letter submitted to the Financial Stability Board (FSB) by the Secured Finance Network (SFNet), the principal U.S. trade association for asset-based lenders, in which SFNet's co-general counsel, various members of the International Finance and Development Committee, and other SFNet personnel call on international lenders to encourage out-of-court workouts (OCWs) beyond the United States.
To promote financial stability, the FSB is currently conducting a thematic peer review regarding the use of OCWs and invited input from stakeholders concerning the use of these workouts in their respective jurisdictions.
In the article, Richard discusses the key points outlined in the letter, including:
- Identification and discussion of the three OCW categories that have widespread acceptance in the U.S.
- Various methods in which countries outside of the U.S. are promoting alternatives to more formal and traditional reorganization proceedings
- How governments in other counties have addressed business failures prompted by the COVID-19 pandemic
- How U.S.-style asset-based lending helps distressed companies navigate and survive during difficult economic times
- Experience from U.S.-style models that display why OCWs are crucial for companies faced with economic troubles
Richard is the chair of SFNet’s newly formed International Finance and Development Committee and is a member of the Executive Committee as well. He served SFNet as co-general counsel and represented the association at the United Nations Commission on International Trade Law. At Goldberg Kohn, Richard represents banks and other financial institutions in structuring and documenting credit facilities, with a focus in cross-border lending.