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July/August 2015

Borrowers
Vol. 13 No. 5
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COVER STORY

Innovative Growth Strategies — Citizens Business Capital Growing Through Holistic Solutions - In his six years leading Citizens Bank’s ABL unit, Citizens Business Capital, Chris Carmosino has targeted his efforts on commercial bank alignment and expanding the lending group’s offerings within the larger scope of the bank, to provide clients with holistic solutions encompassing all aspects of the debt capital structure.

FEATURES

A Waning Credit Cycle — Why the End Will Be Softer This Time - Monroe Capital CEO Ted Koenig writes that, while signs point to a credit cycle entering its final stages, he expects a softer landing than in 2007. Attractive investment opportunities for non-bank lenders, ABLs and other non-regulated credit providers are expected to continue, as the new landscape emerges.
Big Data and the Appraiser… Mitigating Risk and Unleashing Value - A new generation of appraisers has emerged to meet the growing need of ABLs to value collateral and execute on transactions, with growing access to actionable data, along with associated offerings that mitigate risk and unleash value in a constricted marketplace.
Social Media Accounts — Bankruptcy Court Ruling Sets Precedent - Baker Donelson attorneys M. Ruthie Hagan and Zachary B. Busey dissect the tumultuous In re CTLI, LLC bankruptcy case involving and including a debtor, a derivative action, Chapter 11, an order to surrender social media account passwords, the U.S. Marshals Service and even jail time. The resulting ruling will be frequently cited in future social media cases.
U.S. and Global M&A — Credit Markets Fueling Demand - The U.S. and global M&A feeding frenzy continues on, as leveraged finance conditions are relatively favorable for financing acquisitions and dividends, boding well for M&A activity in the remainder of 2015. KPMG managing directors Joe Nuzzolo and Bill Welnhofer say the Federal Reserve may not put a halt to the liquidity fueling the M&A fires just yet.

TURNAROUND CORNER

Steering a New Beginning — Setting a Distressed Company on a Path to Sustainable Growth - When a distressed company, led by a newly appointed owner, faced repeated rejections from traditional lenders, Lawrence Gardner Associates stepped in and enlisted an asset-based lender to creatively finance U.S. dollar-denominated Mexican receivables, crafted a successful exit strategy from a factoring agreement, and set up the company for sustainable growth.

SPECIALTY LENDING

Unique Funding Solution … A Multi-Tiered Approach For a Growing Company - Steve Tomasello, EVP, East Division president of Crestmark Bank, recounts a complicated transaction for a thermoforming company that required a customized solution and carefully timed, coordinated efforts by an experienced lending team.

LEGAL LINES

Beyond JPM’s UCC Mistake: How Secured Creditors Are Coming up Short - Recent court rulings should put secured lenders on alert to ensure the security interests they bargain for are enforceable. ABF Journal recently highlighted a notorious case involving JPMorgan Chase’s mistaken release of its UCC financing statements and resulting failure to secure its $1.5 billion loan to General Motors. Rick Antonoff, a partner with Blank Rome, goes beyond JPMC to discuss other surprising rulings.

FINAL CUT

JP Morgan Denied Rehearing On $1.5B Error - ABF Journal illustrator Jerry Gonzalez provides his take on The Second Circuit Court of Appeals denying JP Morgan Chase’s petition for a hearing en banc regarding a prior decision on the mistaken termination of UCC financing statements securing its $1.5 billion loan to General Motors, resulting in a major victory for GM’s unsecured creditors.

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