In distressed situations and workouts, lenders often trade forbearance and additional funding for concessions that make it easier to foreclose if the debtor commits new defaults or files a bankruptcy. Two recent Bankruptcy Court decisions refused to enforce provisions in forbearance agreements that...

For a distressed company running low on capital, an investment from insiders may represent a last best hope for survival. Insiders may be willing to risk throwing good money after bad for a chance to save the company even when any third party would stay safely away. Insiders of a failing company...