COVER STORY
Creating the Lender Finance Niche: Wells Fargo’s Andrea Petro Looks Back at a Career Filled with Accomplishments - In November, Andrea Petro stepped down as executive vice president and division head of Wells Fargo Capital Finance’s Lender Finance Group — a niche lending product she created and developed more than 20 years ago. As she prepares to move on to the next phase of her life, Petro spoke with ABF Journal editor Nadine Bonner, touching on the highlights of her career and recalling how she thrived on the challenge of being a woman in a man’s business world.
FEATURES
View from the Bench: One of the Nation’s Top Bankruptcy Judges Analyzes the Chapter 11 Landscape - Chapter 11 in 2017 seemed to be a paradox. On one hand, every day seemed to bring news of a national retailer filing for protection. On the other hand, the American Bankruptcy Institute, which monitors Chapter 11 commercial filings, contends that there were fewer filings because of the high cost. The Honorable Michael B. Kaplan, U.S. Bankruptcy Judge for the District of New Jersey, provides unvarnished answers to ABF Journal’s questions about the state of Chapter 11 today.
ABI 2017 Chapter 11 Review: Large Company Filings Down, Retail & Oil Still Show Distress - Although a parade of Chapter 11 filings by major retailers grabbed the headlines in 2017, Samuel Gerdano and Ed Flynn of the American Bankruptcy Institute point out that, overall, large company filings were down compared to the previous two years. They predict 2018 will offer more of the same.
Embracing the Cloud: Cutting Costs With Online Solutions that Eliminate Paperwork - While there are many advantages to ABL lending, the biggest disadvantage is the cost involved in evaluating and monitoring the collateral. In the past, the paperwork required to process the loans was onerous for both borrower and lender. Hank Noon explains how cloud solutions can eliminate much of the paperwork involved, resulting in lower costs and happier customers.
Digitalizing ABL Loans and Liquidity: InterNex Capital Marries Technology with Tradition - InterNex Capital was founded by a group of former GE Capital executives and fintech entrepreneurs to bring digitized asset-based lending to the lower mid-market. InterNex Capital brings a “bankable” working capital financing product to small and mid-sized businesses with $1 million to $50 million in revenue. InterNex has blended traditional asset-based lending with new technology.
TURNAROUND CORNER
Loan Losses and a Lender’s Stages of Grief: How Turnaround Pros Can Guide Lenders from Depression to Resolution - Now and then, despite due diligence and careful underwriting, a loan goes bad. Patrick Walsh describes the five stages of grief that a lender passes through when a loss seems imminent and suggests ways that a turnaround professional can help the lender work through these stages and achieve a positive outcome.
SPECIALTY LENDING
The Forgotten Sector of Senior Care Operators: Lending Options for Smaller, Non-Institutional Owners - As the aging population continues to grow, there is significant demand for smaller, more “home-like” senior communities that are also more familiar and affordable. The developers, owners and operators of these smaller communities typically face unique challenges obtaining financing, especially from traditional lenders. Adam Sherman explains how specialized lenders create offerings for this niche segment.
LEGAL LINES
When Is a Consignment Not a Consignment? A Look at the Ongoing Sports Authority Bankruptcy Case - In the world of bankruptcy, the definition of “consignment” is not as simple as it would seem. In the ongoing Sports Authority bankruptcy case, the company is trying to remain afloat by selling merchandise it obtained on consignment. The consigners, of course, want to be paid, as do the company’s lenders. Judge Cyganowski reviews the case, which has not yet been resolved, and explains the complexities of consignment.
FINAL CUT
Vitamin World to Liquidate, SSG To Advise - Despite DIP financing from Wells Fargo, a distraught Vitamin World is heading for liquidation. ABF Journal illustrator Jerry Gonzalez shows the company getting a little help from its friends at SSG Advisors.