Self-study: Prepayment Premiums in Bankruptcy

Also known as a "make whole" premium, a prepayment premium constitutes an obligation payable to a lender that is in excess of principal and accrued interest by a borrower in the event the borrower repays the loan prior to its maturity date. This type of premium is meant to compensate the lender for the interest it would have earned had the loan remained outstanding until its original maturity date.

Prepayment premiums are often at issue in chapter 11 cases, and rulings in the Momentive and other cases have wide implications for both private and public debt, and for small–to–mid sized as well as large entities. Financial advisors and attorneys will benefit from this presentation by Gerard Keegan and David Wender, who discuss Momentive and other recent bankruptcy decisions focusing on the drafting and applicability of prepayment premiums in bankruptcy. Different perspectives are shared about how prepayment premiums should be addressed in the law–one from a litigation perspective and the other from a drafting perspective. Based on the live webinar of December 3, 2014.

Learning Objectives
After completing this program, participants will be able to:

  1. Definition and impact of forms of prepayment premiums, no-call provisions, fixed prepayment fees and yield maintenance fees.
  2. Major similarities and differences in treatment in state courts.
  3. Identification and application of relevant Bankruptcy Code provisions.
  4. Discussion of rulings, bankruptcy-related issues and impact of recent cases including Denver Merchandise Mart, American Airlines, MPM Silicones.

INSTRUCTORS
Gerard Keegan
Partner | Alston & Bird LLP

Co–chair of Real Estate Finance & Investment Group, Mr. Keegan has expertise in the representation of investment and national banks and other lenders in the origination, securitization, syndication, sale and workout of commercial real estate loans. This expertise includes the creation of form loan documentation for conduit and large loan programs, establishment of commercial mortgage loan conduit programs, continued oversight and advice with respect to the ongoing operation of such programsoperation of such programs (including servicing, restructuring and workout advice).
David Wender
Partner | Alston & Bird LLP

Partner in the firm's Bankruptcy, Workouts & Reorganization Group, Mr. Wender represents a variety of clients in complex bankruptcy cases, out–of court workouts, debt restructurings, asset dispositions and claims reconciliation procedures. He represents purchasers, sellers and other parties in bankruptcy Section 363 sales; debtors in possession; secured and unsecured creditors and creditor’s committees.
Price $65
CPE Credit Recommended, 1 CPE Credit hour(s), field of study—Specialized Knowledge & Applications
Knowledge level Basic—Most beneficial to CPAs and other financial advisors new to a skill or attribute, including individuals at staff or entry level in an organization as well as seasoned professionals who desire increased knowledge in the subject matter.
Additional Info Online registration and payment of fee will allow materials to be shipped to participant’s address and participant to submit request for CPE credit after completing the requirements (instructions enclosed with materials). Presenters’ PowerPoint slides for reference are included with materials. If unable to register online, participants may call AIRA’s office at (541) 858-1665 to order.
Format CD (Audio/Video) with Manual
Prerequisites None
Advance prep None

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Refunds:

Requests for refunds must be received within 10 days after receipt of course subject to a $25 cancellation fee and return of all materials in good condition.

Questions and Complaints Resolution

For assistance or questions regarding refund, complaint and/or program cancellation policies, please contact our offices at 541.858.1665. For additional questions or for resolution of any complaint send email to Thomas Morrow, Executive Director, tmorrow@aira.org

National Registry of CPE Sponsors

"Association of Insolvency and Restructuring Advisors" is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.