Credit underwriting cycles have a predictable rhythm: Commercial lenders make ever-riskier loans during boom periods and then, during the busts that follow, often see their claims or liens attacked following
Equitable Subordination Attacks on Secured Lenders
This article discuss two recent cases involving equitable subordination in bankruptcy that should inform the conduct of lenders when dealing with financially deteriorating borrowers, especially in such matters as credit facility amendments, forbearance agreements and providing additional financing.
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