November/December 2012

November/December 2012
Fall Conference Issue
Vol. 10 No. 8

FinalCut: Thain Denies CIT Sale Rumors

ABF Journal illustrator Jerry Gonzalez shares his depiction of CIT’s CEO John Thain’s declaration during a CNBC interview that he is “absolutely not” seeking a buyer for the company.

When Restructuring Reveals Fraud… MainStream Management Uncovers Ponzi Scheme

When MainStream Management’s Jim Burritt and his colleagues entered GLC Limited’s warehouse, they were stunned to find a rodent-infested mish-mash of food items, chipped pottery and clothing, instead of the appliances they expected. After investigating GLC Limited’s business practices and inventory, MainStream ultimately revealed a Ponzi scheme that had bilked investors out of millions of dollars.

With Fewer Opportunities and Lower Utilization — What Comes Next in Restructuring?

Ongoing sluggish economic growth and high levels of corporate debt created an expectation that post-recession restructuring activity would continue at a reasonable pace. However, as measured by U.S. bankruptcies, the trend seems to have reversed. AlixPartners’ Thomas Osmun and Joseph Mazzotti examine where the bankruptcies have gone, activities that have taken their place and what it means for the restructuring industry.

2012 ABL Volume Drops; 2013 Dealflow … ‘Questionable’

Asset-based lenders have found deal opportunities rather slim so far this year, with Q1/12-Q3/12 ABL volume dropping 45% over year-ago levels. Where dealflow will come from for the rest of the year and into 2013 is questionable, as the refinancing cliff has been pushed out to 2017, leading most lenders to dismiss hopes for a meaningful pipeline in 2013 absent a pickup in M&A.

2013 … Where Do We Go From Here? Finding Opportunities for a Profitable New Year

Despite ongoing economic concern throughout the U.S., Robert Katz and Marc Levee offer their thoughts on identifying opportunities to make 2013 profitable and prosperous. No question times might be tough, but your level of creativity will be one of the biggest differences between a mediocre or dazzling new year.

ABLs Benefit From Boom in Gas Exploration

Over the past 12 months, the rising price of crude oil, coupled with the move of energy companies away from coal, has resulted in the emergence of shale gas exploration in the U.S. and Canada. Shale gas production is a low-cost energy alternative that is creating new capital investment opportunities for private equity groups and asset-based lenders.

Expanding a Footprint to ‘Cover a Lot More Ground’ Industry Veterans Launch Triumph Commercial Finance

Finding the right market or niche is important when launching a new venture. In Triumph Commercial Finance’s case, the most crucial part was how to provide financing to those borrowers that are sometimes lost in the shuffle, those on the lower end of the market. ABF Journal speaks with EVP Dan Karas about what is driving Triumph Commercial Finance.

Flexibility: The Final Frontier For Lenders

With an imbalance between supply and demand, conditions this year were supposed to favor lenders. Instead, the first half of 2012 has been lackluster, with loan volumes below last year’s pace. In order to win financings, flexible participation has become increasingly important. And, those lenders with multiple sources of funding are finding themselves at a growing advantage.

Law Firm Owed Various Duties Stemming From Investigation Into Insider Wrongdoing

The Le-Nature’s saga is one that has continued for years. Recently, Marc Kirschner, in his capacity as the trustee of the company’s liquidation trust, has gone up against K&L Gates and others that have represented the company. Here, Hinshaw & Culbertson’s Terrence McAvoy summarizes the latest in the case.