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Umbrella In The Rain: How To Use Forbearance Agreements

Law360, New York (September 7, 2016, 12:37 PM EDT) -- Most of us remember one of the lessons taught to us by our parents — always take an umbrella when rain is threatened. During a financial storm, such as the current oil and gas market downturn, many borrowers find themselves encountering financial stress and defaults. As a result, borrowers and lenders may reach for the forbearance agreement as a figurative umbrella to provide protection during such difficult times. This article will discuss the fundamentals of forbearance agreements and a few practical tips for the borrower and lender to consider when using them....

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