FinalCut: Wall Street Aristocracy Got $1.2 Trillion in Fed’s Secret Loans

ABF Journal illustrator, Jerry Gonzalez offers a “revolutionary” interpretation of a top-ranked abfjournal.com news story.

November/December 2011

November/December 2011
Annual Conference Issue
Vol. 9 No. 8

Crystal Financial Revisited — Five Years Later & Three Times Charmed

Ward Mooney, Colin Cross and Michael Pizette are no strangers to success. Despite their collective achievements, these veteran lenders point out that the ultimate beneficiaries of all their hard work are the dozens of companies struggling to make their way in an unfriendly credit environment — companies that without their help, could very likely become casualties of an economy still struggling to recover.

Contractual Subrogation in Bankruptcy and the Right to Vote

The U.S. District Court for the District of Arizona recently issued an opinion in the bankruptcy case of Avondale Gateway Center Entitlement (the debtor) affirming a bankruptcy court decision holding that the contractual subrogation, through a subordination agreement, of a senior secured lender to the rights of a junior secured lender authorized the senior lender to vote on the debtor’s Chapter 11 plan of reorganization on behalf of the junior lender.

Armed With a Unique Platform and Intense Passion for ABL, AloStar Business Credit is Ready to Serve Its Market

How do two ABL industry executives turnaround an ailing correspondent banking business into an ABL powerhouse? For Andrew McGhee and Michael Gillfillan, executives at AloStar Bank of Commerce and AloStar Business Credit, the answer comes quite easily. Remember who you are and do what you do well. Armed with a unique platform , a top notch staff and an intense love of the ABL business, McGhee assures this relative newcomer is open for business.

Asset-Based Lending Team Joins Rockland Trust to Expand Middle-Market Lending — Chris O’Connor, SVP, Leads New Initiative

In August, Rockland Trust expanded its commercial lending capabilities by hiring an experienced team of asset-based lending professionals who recently worked together at Webster Business Credit. Led by Chris O’Connor, senior vice president of asset-based lending at Rockland, the unit is poised to build on the 104-year-old bank’s strong regional reputation and robust growth in commercial lending over the past five years.

A Look Back at 2011 – So Far, What’s So

The year 2011 began on a hopeful note with signals that the U.S. economy was showing signs of strength in 2010. This, after a dismal and disappointing 2009. In the following article, Great America’s Michael Petruski returns to review the first three quarters of 2011 with a look at industries and markets where asset-based loans are directly affect by change and cyclicality.

Turnaround Accomplished: Correcting Cost Accounting in Service Organizations

Often times the complexity of the transactions in service organizations conceals the understanding of the true cost drivers. As these organizations grow, customer offerings usually expand and the ability to maintain cost controls fall by the wayside. A step-by-step approach to understanding the sales fulfillment process and related transaction costs should be undertaken to direct turnaround efforts to the most critical areas.

The New Consumer Financial Protection Agency Could Spell Trouble for the Factoring Industry

As part of Dodd-Frank, a new federal agency was created: the Consumer Financial Protection Bureau (CFPB). The board of the American Factoring Association, notes that the CFPB, which is authorized to promulgate regulations relating to consumer protection, could deem crucial aspects of factoring transactions as being “abusive” and impermissible.

Subordination Agreements… Losing the Upper Hand

Here’s something to think about: Does the UCC create a limit on the damages a senior credit presumes it can recover from a junior creditor if the junior creditor breaches? This article addresses a particular circumstance when a senior creditor’s contractual expectation may not be protected vis-à-vis a subordinate junior creditor as a result of the senior creditor’s misplaced reliance on a less than well-crafted subordination agreement.