As a result of recent economic conditions and continued instability in the credit markets, borrowers, guarantors, and bankruptcy trustees have become increasingly aggressive in threatening and filing lender liability claims. These tactics often are employed as a means of increasing leverage in refinancing and workout negotiations, creating a bargaining chip in loan enforcement litigation, and augmenting the recovery of unsecured creditors in insolvency proceedings.
We have successfully defended lenders like you, as well as assisted in the enforcement of credit agreements and realization of collateral in state and federal trial and bankruptcy courts. Should a seemingly straightforward loan enforcement action go awry as a result of a lender liability “defense” strategy, our Financial Institutions attorneys quickly get up to speed on the underlying credit facility, tapping in to our experience and acumen to formulate and execute a strategy.
Ultimately, our goal is to help you map out a strategy to avoid or minimize the risk of lender liability claims. We can help you evaluate your options with respect to particular credits, highlighting the risks that certain loans present prior to the transaction. We can help you distinguish claims and situations that present true legal and economic risk from those that are little more than negotiating ploys.