January/February 2009
Risk Management &Fraud Prevention Issue …
A Survival Guide to Turbulent Times

A Forensic Look Into Transactional Financial Due Diligence
By Peter Kyviakidis and Gareth Lea, LECG

The recent failures of the Petters Group and other high-profile corporate accounting scandals have clearly demonstrated the existence of numerous accounting-related issues, some of which arise as a result of fraud, and others whose origins are less nefarious. (Ref # FRD021)

Know Your Customer Regulations Take on a Higher Meaning
By Jerry Oldham, 1stWEST Financial

Know Your Customer regulations take on a higher meaning to those that manage risk at the level common to all asset-based lenders. In these days of increased balance sheet risk and uncertain economic times, it can be concluded that it is management that repays the loan. What’s a lender to do? (Ref # CRD036)

Twilight Falls on the Secret Garden
By Christopher Moraff, Associate Editor

From a secret room, employees of plastics firm Gitto/Global Corp. ran a multimillion-dollar fraud scheme, federal investigators say. Four years after the company’s collapse, ABF Journal takes a look back at a fraud that shook the ABL industry. (Ref # FRD022)

From All Facets

PROFILE OF SUCCESS
A Brief Encounter Leads to a Lasting Career
By Stuart P. Papavassiliou, Senior Editor

When the Bank of Ireland sought to launch its asset-based lending operations in the U.S., the UK-based institution — created by Royal Charter in 1783 — chose David Grende to head Burdale Capital Finance in 2006. Grende shares his varied experiences with ABF Journal readers.

(Ref # EXEC065)

TURNAROUND CORNER
News and Commentary From the Corporate Renewal Front
The Inaugural Hall of Fame Class
By John Rizzardi, Cairncross & Hempelmann

Until recently, the turnaround, restructuring and distressed investing industry hasn’t fully recognized the frontrunners in their respective sectors. That is, until now. (Ref # TM090)

FACTORING FOCUS
Recent Headlines, Notable Deals, Practicable Advice

In a Quest for the Greater Good, This Factor Is No ‘Lone Ranger’
By Stuart P. Papavassiliou, Senior Editor

At a recent panel discussion hosted by The Finance Forum in Dallas, factoring veteran Debra Wilson had a great deal to say about the need for commercial finance professionals to pull for the greater good. This edition of ABF Journal brings Wilson’s insights to a wider audience. (Ref # FAQ083)

BANKRUPTCY UPDATE
News From the Bankruptcy World — Who’s Filing, Who’s Exiting and Who’s Helping

Absence of Actual Harm to Creditors Defeats Equitable Subordination Bid
By Mark G. Douglas, Jones Day Business Restructuring Review

Under the Fifth Circuit’s holding, in the absence of any harm to other creditors or the debtor, equitable subordination of a claim is not the appropriate remedy. Mark Douglas from Jones Day explains why. (Ref # BANK023)

LEGAL EYES
Expert Coverage of Legal Issues in Commercial Finance

Plus Articles From Top Legal Talent
What’s Old Is New: A Primer on Covered Bonds in the U.S.
By Jamie D. Kocis, Baker & McKenzie

In the wake of the current mortgage crisis, the traditional method of residential mortgage financing for banks via securitization is no longer an option. As a result of the moribund securitization market, finding alternative sources is critical. (Ref # LGL093)