Loan Restructuring: Effective Negotiation for Borrowers

The economic boom that started in 2003 and continued through 2007 was an ideal time for corporate borrowers to increase leverage and take advantage of historically low interest rates. Many of the loans entered into during that period are coming due in the next two years. The financial turmoil sparked by the subprime debt crisis in late 2008 has made it difficult for many corporate borrowers to repay loans on the terms originally agreed to. Never has the need been greater for legal advisors to assist their clients in negotiating the restructuring and modification of troubled loans.

Good Communication Is the Key

Effective negotiation does not take place in a vacuum. Good communication between the borrower and lender forms the foundation that makes effective negotiation possible.