|
|
Article: Recommending Turnaround Managers: Ensuring that a Good Deed Goes Unpunished
- Article from:
- American Bankruptcy Institute Journal
- Article date:
- December 1, 2004
- Author:
CopyrightCopyright American Bankruptcy Institute Dec 2004/Jan 2005. Provided by ProQuest LLC. (Hide copyright information)
|
In today's lending world, where lenders often market themselves as their borrowers' partners, lenders increasingly attempt to be part of the solution rather than simply be a borrower's main problem when a loan goes south. In their role as problem-solvers, lenders are encouraging (and sometimes insisting) that their borrowers lake certain actions, such as hiring a turnaround manager, as a condition for the lender's providing forbearance or cooperation.
The questions then arise: Can a lender require a borrower to hire a specific turnaround manager as a condition of forbearance, and how much other control can a lender properly assert over a debtor?
Equitable Subordination: The Penalty for ...