AlixPartners’ Esben Christensen and Foster Finley examine the health of the global container shipping industry in the wake of the Hanjin bankruptcy. The industry desperately needs a change in the wind, but with more bankruptcies and continued consolidation on the horizon, this seems unlikely.
For the sixth straight year, fewer bankruptcy cases were filed. American Bankruptcy Institute Executive Director Sam Gerdano and Consultant Ed Flynn provide a more nuanced look at the patterns that emerged in 2016 and predicts a quiet year ahead.
It’s no secret that brick-and-mortar retailers are struggling to stay in business. Stephen Selbst examines the factors that have created the current retail crisis. He explains why Chapter 11 does not effectively give retailers an opportunity to restructure and suggests avenues that lenders can take to protect themselves from exposure.
American Apparel isn’t the only youth-oriented retailer that sought Chapter 11 protection in 2016, but its story is the most dramatic. Its first bankruptcy proceedings included a failed battle by ousted Founder and CEO Dov Charney to regain control. Six months after exiting Chapter 11, the company was back in bankruptcy with $30 million DIP financing from Encina Business Capital and a $66 million stalking horse bid from Canadian underwear manufacturer, Gildan. Is this American Apparel’s last stand?
As the senior lender, your rights to recoup your funds should be top priority during bankruptcy proceedings. But those pesky subordinate lenders often get in the way. Rocco I. Debitetto explains the best way to craft an intercreditor agreement that forces subordinate lenders to “sit down, shut up and mind their own business” until you get paid.
Vol. 15, No. 1
Vol. 14, No. 2
ABF Journal illustrator Jerry Gonzalez predicts that the mattress may be a better place to stash your cash than the bank.
Retail sales are moving from brick-and-mortar to the Internet. Opportunities still abound for commercial finance consultants, but Donald Barrick points out there are obstacles to be avoided in this new environment.
Fintech lender OnDeck has provided $3 billion in small business loans in eight years. Now the company is developing a new online product for banking giant JPMorgan Chase. Business lending is moving into the 21st century, and other banks are also dipping a toe in the fintech water.