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ABFJ-SEP-2010

September 2010

Turnaround Management
Vol. 8 No. 6
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FEATURES

Despite Lender Hopes and Enhanced Liquidity, ABL New Money Remains Limited in 2010 - The article title says it all … lenders were poised to do more business in the second quarter of 2010, yet there was limited dealflow to support a robust or even steady pipeline caused at least in part by the high-yield bond market, which pulled back mid-quarter. In short, lenders were left to their own devices to find enough deals to keep them active.
The Inflection Point: Financing a Turnaround - Asset-based lending and leveraged financing have reappeared in a way that was unimaginable a year ago. Suddenly in Q4/09, it was as though a switch was thrown. Trimingham directors Hugh Larratt-Smith and Joseph Vuckovich speak to several lenders on what makes for financing a successful turnaround.
Fast-Track Business Bankruptcy Cases … Expedited or Steamrolled? - The post-BAPCPA bankruptcy world places a premium on speed. And since time is money — particularly in the bankruptcy process — this dynamic is of little surprise. But fast-track bankruptcy cases aren’t without institutional or individualized costs. In the following feature, two restructuring professionals look at four recent fast-track cases to determine “just how fast is too fast?”
Machinery & Equipment: Setting the Standard for Industrial Auctions — Déjà Vu All Over Again - Many of the major valuation and appraisal firms in the U. S. have their origins in the auction business of industrial assets and/or retail going-out-of-business liquidations. With the advent of the Internet, advances in fiber optics and telecommunications, computer technology and a growing global economy have fueled innovation in the way industrial assets are marketed and sold today.
Chief Restructuring Officers and Receivers — Lenders’ Solutions to Difficult Situations - Under any scenario, the loss of trust in a customer’s ability or desire to operate its own business effectively can be one of the most difficult challenges facing a lender and can feel like the weight of cement shoes to both the lender and customer alike. But bringing in a trusted, experienced, independent third party as either a CRO or receiver can immediately lift that weight and allow the company to walk straight to whatever the appropriate goal line may be.
No Crying Over Spilt Milk: Strategies for Lending in the Dairy Industry - Lenders in the dairy industry are accustomed to volatility. As long as the volatility in inputs and outputs was moving in tandem, lenders could expect their borrowers to achieve some minimal “guaranteed” margins and debt service remained possible. However, that changed beginning in 2007…
Elegant & Effective … Letters of Credit in Commercial Loans and Bankruptcy (Part 2 of 3) - For many years, letters of credit have been used to facilitate sales of goods and to provide credit enhancement for all kinds of contractual obligations. Despite the widespread use of letters of credit over the years, many view letters of credit as complicated and esoteric instruments. Part II of this series addresses security interests in letters of credit and the role of letters of credit in syndicated transactions. Part III of this article, which will appear in the October edition of ABF Journal, explores the treatment of letters of credit in bankruptcy.
CFA Annual Convention: Exceptional Networking & Educational Opportunities - The Commercial Finance Association’s (CFA) Annual Convention is the largest gathering of asset-based lending and factoring professionals and that offers networking and educational opportunities. The 66th Annual Convention will be held October 20-22, 2010 at the Sheraton Chicago, and is certain to attract professionals from many countries and disciplines to collaborate on issues in commercial lending.

 

CORPORATE/EXECUTIVE PROFILE

A Room With a View – The Sky’s the Limit for LBC Credit Partners - High atop the Cira Centre in downtown Philadelphia, big things are afoot. Though it doesn’t happen that often, today, the entire team that makes up middle-market lending house LBC Credit Partners is in the office; and there is the feeling of something electric in the air. ABF Journal decided to pay the company a visit to find out why.

 FROM ALL FACETS

TURNAROUND CORNER

Turnaround Management Association: Strong, Vital and ‘In Tune’ With the Industry It Serves - With more than 9,600 members and counting, a growing international constituency and a myriad of educational and networking initiatives in various stages of development and implementation, the Turnaround Management Association finds itself expanding on every conceivable front. And at the tender age of 22, the association does whatever it takes to keep tuned to the ever-evolving needs of its members.

FACTORING FOCUS

In Sticky Situations — Specialty Lenders Rise to the Occasion - On April 20, 2010, BP's Deepwater Horizon drilling rig exploded and with it a sea-floor oil gusher began an almost three-month leak into the sea. The leak was capped on July 15, but not before spewing more than 4 million barrels of crude oil into the Gulf of Mexico. In the continuing aftermath, several factoring companies have reported assisting those that have aided in the cleanup resulting from the spill.

BANKRUPTCY UPDATE

Ready for Prime Time … Receiverships Grow in Scope and Popularity - The legal restrictions and market perception surrounding a bankruptcy can make a turnaround a difficult affair, especially in the current economy. Receivers were once appointed mostly to handle distressed real estate deals, but Chris Tierney of Hays Financial Consulting argues that experienced receivers have the leeway and the acumen to turnaround almost any business.

LEGAL EYES

Casino Brawl … Intercreditor Agreements Get ‘Trumped’ - The recent intercreditor dispute between The Donald and corporate raider Carl Icahn has all the glitz of Atlantic City itself, including two competing but confirmable plans with senior and junior creditors slugging it out for ownership of a gaming empire.

FINALCUT 

FinalCut: CIT Second-Quarter Profit Dwarfs Analysts’ Estimates - ABF Journal illustrator, Jerry Gonzalez’ visual interpretation of a top-ranked abfjournal.com news story according to our visitors.

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