Back to Issue Archive
ABFJ-APR-2010

April 2010

Annual Factoring Issue
Vol. 8 No. 3
Click Here To See Other Issues

FEATURES

The Tangled Demise of Arrow Trucking - As forensic accountants work to piece together what’s left of the company, and fleet lessors comb the country for missing trucks, the three executives blamed for orchestrating the multimillion factoring fraud that brought Tulsa-based transportation firm Arrow Trucking Co. to its knees are busy pointing fingers at each other. Using court records, press reports and the statements of those involved, ABF Journal attempts to untangle the convoluted mess that was Arrow Trucking.
Cross-Border Factoring of Canadian Receivables - Martin Fingerhut of Blake, Cassels & Graydon outlines a number of issues that frequently arise, from a Canadian legal standpoint, when a U.S. factor purchases, from a Canadian client, receivables that are owed by Canadian obligors.
Four Fabulous Factors… What Defines a Legacy? - As we assembled the lineup of profiles for this year’s look at four factoring companies, a unifying theme began to emerge -- legacy. And each of the four companies illustrates the multi-dimensionality of legacy in its own unique way. Whether it’s a father and son team; providing financing to a unique niche for the greater good; the impetus to acquire, sell and re-acquire the same company or serving as a training ground for future factoring entrepreneurs, each has an interesting story to tell.
The True Face of Dilution (Part 3 of 3) - Field examiners may spend a considerable time scrubbing a borrower’s trade accounts receivable (A/R). Often the resulting ineligibles proposed are met with the following question “Isn’t this all covered by dilution?” Knowing the answer to the question is critical to ensuring that the borrowing base (Bbase) formula adequately protects an asset-based lender. ABF Journal’s coverage on field examinations concludes with the final part of this three-part series.

FROM ALL FACETS

TURNAROUND CORNER

Making the Liquidation Call - Recommending a liquidation can be among the most painful decisions a turnaround professional is forced to make, but it can also be among the most impactful in terms of preserving value. With preparation and a detailed plan, a liquidation can be carried out in an orderly manner that will maximize financial recovery and minimize disruptions to all parties involved.

FACTORING FOCUS

A Borrowers’ Sector Report Card Shows Some Improvement - Given the extraordinary credit crisis American businesses have been weathering, we thought that Merchant Factors’ outlook on various borrower sectors is an excellent barometer for commercial finance companies. Adam Winters, the company’s president and CEO offers a sector by sector report card. Some sectors move to the head of the class, some show scant improvement and others aren’t making the grade.

BANKRUPTCY UPDATE

The Not-So-Secured Right to Credit Bid - On March 22, 2010, the Third Circuit Court of Appeals, which covers the districts of New Jersey, Pennsylvania and Delaware, issued a decision that is of ground breaking importance to secured lenders. This decision arises out of the Philadelphia Newspapers, LLC1 bankruptcy case pending in the Eastern District of Pennsylvania and seriously affects the right of secured lenders to credit bid in a sale effected in connection with a plan of reorganization.

LEGAL EYES

The New Federal Pleading Standards in the Post-Iqbal Era - Two recent Supreme Court decisions — Bell Atlantic Corp. v. Twombly and Ashcroft v. Iqbal -- have threatened to dramatically change the framework under which federal complaints are analyzed for sufficiency. These decisions will place a substantial burden on plaintiffs in federal suits.

FINALCUT 

FinalCut: Treasury Loses $2.3B CIT Stake; 82 TARP Banks Delinquent in February - ABF Journal illustrator, Jerry Gonzalez’ visual interpretation of a top-ranked abfjournal.com news story according to our visitors.

If you have questions regarding ABF Journal content, call us at 800.708.9373 x128 or email jhoffman@abfjournal.com.