Melinda Franek, senior counsel at CNH Partners, the arbitrage affiliate of AQR, led a Continuing Legal Education webinar on make-whole provisions in loan agreements in bankruptcy on September 23.
The webinar reviewed emerging theories regarding enforceability of make-whole provisions, reviewed bankruptcy case law developments and outlined steps that lawyers can advise lenders to take to protect entitlement to make-whole premiums.
The webinar was of interest to many bankruptcy lawyers because case law on the enforceability of make-whole premiums in bankruptcy varies widely. Different courts take several different approaches to analyzing these premiums: reliance on contractual language, or looking at premiums as liquidated damages, penalties or unmatured interest.
Joining Franek in leading the webinar was Cindy Chen Delano, Associate General Counsel for AIG Investments in New York.