May 2006
OUT OF THE VAULT —
Unlocking the Value of IP Assets

Northern Expansion… Canadian Companies

Gain Operational Flexibility with Asset-Based Loans
By Ira Kreft and Junior Del Brocco, Bank of America Business Capital

From 2003 to 2004, Canadian asset-based loan volume increased more than 38% to U.S. $10.5 billion, the highest growth rate of any region worldwide. Bank of America Business Capital’s Ira Kreft and Junior Del Brocco examine this phenomenon of northern expansion. (Ref # INTL028)

Retention Payments & Severance Bonuses are Alive—

If Not Exactly Well
By Forrest B. Lammiman and Patrick M. Jones, Lord, Bissell & Brook

The BAPCPA has been widely criticized as a poorly drafted patchwork of amendments designed to appease special interests and eliminate the pet peeves of individual legislators. Pat Jones and Forrest Lammiman discuss one such pet peeve regarding the common practice of paying bonuses to key executives at the outset of a Chapter 11 bankruptcy case. (Ref # BANK017)

Tapping the Untapped —The ‘Ins & Outs’

of Intellectual Property Finance
By Michael Bunis, Fish & Richardson PC

As interest rates increase, operating companies are looking more and more to reduce the cost of credit as a way to fund growth. One virtually untapped source of collateral is the company’s intellectual property assets. In the past, such assets have been housed in some back office to collect dust. All that is beginning to change… (Ref # LSP023)

A Different Kind of Service… Transcap Trade Finance
By Kara A. McDonald, Assistant Editor

Recently, ABF Journal spent some time with Paul Schuldiner at Transcap Trade Finance to gain an understanding on the products this purchase order finance company offers and the markets it serves — and, to our surprise, we found out a whole lot more. (Ref # FAC053)

Columns

TURNAROUND CORNER
Fast Sustainable Rusults: Leveraging Lean

to Boost Lackluster Profits
By Fred Langer, Getzler Henrich
With a lot on the line, the asset-based lender is often looking for its borrowers to perform operational improvements that will have an immediate but lasting impact on the borrower’s profits and overall operations. Lean manufacturing can be one of the most significant change initiatives within a company. (Ref # TM052)SURVIVING SCRUTINY
ABLs, Take Heed! Recent Accounting Changes Deserve Lenders’ Attention
By Michael Fox, RSM McGladrey

Financial statements are a key tool for any lender looking to accurately assess the risk associated with a borrower. Changes in the rules governing those statements, however, can make it more difficult for lenders to make those judgments. Currently, two significant changes with FIN 46 and FAS 123(r) deserve special consideration.
(Ref # ACC005)

LEGAL EYES
Texas, Our Texas—The Lone Star State’s Usury Laws Revisited
By Jeffrey D. Dunn, Munsch Hardt Kopf & Harr PC

October 2005 that the Texas economy has strengthened, outpacing the U.S. despite suffering the effects of two major hurricanes. This and other factors point to Texas as a favorable place for asset-based lending, but the prudent asset-based lender should be aware of legal obstacles that are peculiar to commercial lending in the Lone Star State. One such obstacle is the state’s usury laws. (Ref # LGL056)