Distressed Debt & the Chief Restructuring Officer – Understanding the Philosophy, Psychology and Politics (Part 1 of 2)

In Part I of this article, Ken Naglewski of Seabiscuit Partners examines classical turnaround theory and practice in relation to the realities of organizational dynamics and the behavioral aspects of the players in a distressed debt situation. The author opines on the necessity of a CRO assessing the political realities of each situation and developing a political style and game plan that has the best chance to be successful in a particular situation. In Part II of this article, the author reinforces the importance of dealing with political realities of distressed debt situations, provides some examples from real situations and potential strategies for dealing with different situations.

The Skinny About Workouts – De-Mystifying the Workout Banker’s Motivations

When a loan moves from “the line” to workout, the rules of the game change. While a transfer to workout does not necessarily mean that the bank has decided they don’t want the business anymore, it does mean that at a minimum the bank has a heightened level of concern about the borrower’s ability to continue to comply with the terms of their loan agreements. Carl Marks’ Kristina Anderson de-mystifies the workout banker’s motivations.

The Data Driven Turnaround — Data Explosion Offers an Embarrassment of Riches, But Peril for Those Who Fail to Keep Pace

The pace of technological change has been rapid for the past generation, but it is only in looking back that one can begin to perceive broader trends in what has seemed to many to be a deluge of tools, gadgets and relentless complexity. While this generation of unrelenting technological progress has paid numerous dividends, it also represents considerable peril, especially for companies in distress. The operations of companies are becoming increasingly data-centric and so must successful turnarounds.

Advisory Committee on Bankruptcy Rules Recommends Sweeping Revisions to Bankruptcy Rule 2019

A New York bankruptcy court ruled that an unofficial, or “ad hoc,” committee consisting of hedge funds and other distressed investment entities holding Northwest stock and claims was obligated under a formerly obscure provision in the Federal Rules of Bankruptcy Procedure — Rule 2019 — to disclose the details of its members’ trading positions, including the acquisition prices.

FinalCut: CIT Second-Quarter Profit Dwarfs Analysts’ Estimates

ABF Journal illustrator, Jerry Gonzalez’ visual interpretation of a top-ranked abfjournal.com news story according to our visitors.

September 2010

September 2010 Issue
Vol. 8, No. 6
Turnaround Management Issue

Fed Survey Shows Easing of Standards, Terms on C&I Loans

The Federal Reserve’s latest opinion survey on bank lending practices revealed, on net, that large U.S. banks have eased standards and most terms on C&I loans and credit lines to borrowers of all sizes. The survey notes “more aggressive competition” as the primary reason for the shift.

Turnaround Management Association: Strong, Vital and ‘In Tune’ With the Industry It Serves

With more than 9,600 members and counting, a growing international constituency and a myriad of educational and networking initiatives in various stages of development and implementation, the Turnaround Management Association finds itself expanding on every conceivable front. And at the tender age of 22, the association does whatever it takes to keep tuned to the ever-evolving needs of its members.

A Room With a View – The Sky’s the Limit for LBC Credit Partners

High atop the Cira Centre in downtown Philadelphia, big things are afoot. Though it doesn’t happen that often, today, the entire team that makes up middle-market lending house LBC Credit Partners is in the office; and there is the feeling of something electric in the air. ABF Journal decided to pay the company a visit to find out why.

The Inflection Point: Financing a Turnaround

Asset-based lending and leveraged financing have reappeared in a way that was unimaginable a year ago. Suddenly in Q4/09, it was as though a switch was thrown. Trimingham directors Hugh Larratt-Smith and Joseph Vuckovich speak to several lenders on what makes for financing a successful turnaround.