Pub. 14 2019-2020 Issue 6

WWW.NEBANKERS.ORG 20 understand how each would handle the engagement and to set a modest budget. Budgeted fees would be paid from the extended loan proceeds. This proactive response is similar to the CRO role (Chief Restructuring Officer) used by banks in large cases. The CRO role involves an evaluation and recommendation function— which is what’s suggested here. Such a role can also have a receiv- er-like control function—that’s not what’s suggested here. What the Response Attempts to Avoid. What commonly happens with distressed businesses is this: (i) the relationship between Bank and Customer deterio- rates—first gradually, then quick- ly—as communications suffer, (ii) distrust arises, and Bank moves into a replevin action or deed of trust sale, (iii) shortly before a court hearing or scheduled sale, Customer finds and hires a bankruptcy attorney, and pays a retainer, (iv) then Customer files a hurry-up bankruptcy, without a clear strategy, and (v) the bank- ruptcy occurs with Bank and Customer as adversaries. Such a deterioration is what the suggested response is de- signed to avoid. If Bank is fully secured and must be paid in full in bankruptcy, Bank and Cus- tomer shouldwork together to ac- complish their respective goals.  For more information, contact Donald L. Swanson at 402-343-3726. Don is an attorney with the Omaha law firm, Koley Jessen P.C., L.L.O. Bankruptcy — continued from page 19