SummaryWhen a borrower defaults, a forbearance agreement can provide a critical breathing spell – but only if it drives real action. This article explains how including banker-led capital process milestones in forbearance agreements creates a structured, time-bound path toward resolution. By requiring the retention of an investment banker and setting clear milestones (e.g., data room setup, indications of interest, letters of intent, and closing deadlines), lenders and borrowers alike benefit. Lenders gain accountability and the ability to monitor progress, while borrowers gain time, expert guidance, and strategic options to improve outcomes. Drawing on industry best practices, legal commentary, and Ravinia Capital’s real-world experience, we outline how to craft effective milestone clauses, provide example language, and illustrate why this approach is a win-win for both sides.IntroductionIn the world of workout lending and distressed credits, forbearance agreements have long been... Read the complete article here...© Copyright 2025 Ravinia Capital LLC
The Overlooked Key to Forbearance Success: Banker-Led Sale Process Milestones
