Carl Marks Managing Director Kristina Anderson Concludes Her Three-Part Series on Commercial Bank Workouts in the ABF Journal

In Kristina L. Anderson's final article in a three-part series for the ABF Journal exploring the workout banker's motivations, the Carl Marks Advisory Group Managing Director looks at how the dynamics within senior lender syndicates influence decisions in workout and default situations.

For many companies, a syndicated senior credit facility is a key feature of their capital structure, and for many lenders, leading or participating in syndicated loans is their primary business. While there are significant benefits and efficiencies for both borrower and lenders by funding larger credit facilities through the syndicated loan market, a company's ability to manage through tough times can be fraught with unexpected challenges when dealing with multiple creditors under the same umbrella.

While things certainly can progress smoothly, in large part because the lenders are governed by a common credit agreement, it can also seem at times to borrowers and their professionals like the biggest problem they have is not the challenges in their business but the difficulty in getting any kind of reasonable consensus out of their lender syndicate. Even lenders participating in syndicated facilities can find themselves incredibly frustrated when the lender group is asked for accommodations or faced with addressing covenant defaults or other difficult situations. In this article, we’ll examine some of the dynamics inside senior lender syndicates and how they affect the syndicate’s ability to respond in workout and default situations.

Read the full article »»


	Kristina L. Anderson Managing Director Carl Marks Advisory Group LLC

	404-351-4167 \| phone kanderson@carlmarks.com

	The Skinny on Workouts—Dynamics in Bank Syndicates By Kristina L. Anderson Download the full article » Download Part II of the series » Download Part I of the series »