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April 2012

Annual Specialty Lending & Factoring Issue
Vol. 10 No. 3
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FEATURES

Unobstructed View – When it Comes to the Economy, Lenders to the Staffing Industry Have a Front Row Seat - When economic changes are afoot, lenders serving the staffing industry have the advantage of a front row seat. Therefore, we asked three industry experts for their perspective on their dynamic industry: Stephen Leavenworth at Sterling Bank’s Payroll Finance division, James Rothman of Crestmark Bank and G. Allen Geyer of ARG Financial. The three speak to topics ranging from the mechanics to lending to the staffing industry to the indications they perceive for key sectors they serve.
Baubles, Beechcrafts and Brand Names: Lending Against Untraditional Assets - Incorporating the value of untraditional assets into a debt structure to generate incremental liquidity is anything but formulaic and lenders need to approach this with two things in mind. First, it's smart to assume a wind-down is going to happen to identify any pitfalls in the exit strategy. Second, like an archaeologist, lenders need to bring a relentless commitment to keep digging.
Always in Fashion: CIT Aligns With the LA Fashion Industry, Advocates Promotion of ‘LA Style’ - CIT Trade Finance has had an office in Los Angeles for approximately 30 years. While the factoring company serves clients in a broad range of industries, its Los Angeles office is probably most closely aligned with the apparel industry. That’s why, when the Los Angeles Economic Development Corporation was looking for a sponsor of its Los Angeles Area Fashion Industry Profile, CIT seized the opportunity.
From Small Shop to Nationwide Player … With Greenfield Acquisition, Gibraltar Business Capital Execs Are ‘In It for the Long Haul’ - In two short years Gibraltar Business Capital from a nine-personal small ABL shop to a nationwide player. Armed with a solid strategy, significant equity backing and an expanded credit line, the Northbrook, IL-based company made industry headlines recently when it announced it acquired Greenfield Commercial Credit. For CEO Darren Latimer and COO Scott Winicour, this is just the beginning.
Commercial Finance Acquisitions Shed the ‘Cloak of Distress’ - A Conversation With Milestone Advisors' Tim Stute

COMPANY/EXECUTIVE PROFILE

Castle Pines Joins WFCF to Serve Technology Resellers, Vendors & Distributors - In 2003, John Schmidt, Mike Gallagher and Chuck Lillis founded Castle Pines Capital to design and manage channel finance programs for technology equipment manufacturers and distributors. The new company received its first bank financing in 2005 from the Lender Finance Division of Wells Fargo Capital Finance. By 2011, both borrower and lender had come to know each other's businesses so well that an acquisition was a natural progression.

FROM ALL FACETS

TURNAROUND CORNER

‘Hanging Ten’ in Atlantic City – TMA Celebrates Tenth Anniversary of Mid-Atlantic Regional Symposium - This year’s TMA Mid-Atlantic Regional Symposium — Riding the Next Economic Wave: Looking Ahead in Uncertain Times — will be held at Atlantic City’s Borgata Hotel Casino & Spa on June 13-14. Celebrating its tenth anniversary, this year’s symposium features a streamlined itinerary.

SPECIALTY LENDING SHOP

Factoring Deal Opportunities Exist in Public Works Construction, But Don’t Get Hammered - RMP Capital's Earl Harper issues a warning to factors considering factoring to the construction/building industry: Be prepared to assume a great deal more risk and expend a great deal more in time and effort as compared to other industry sectors. However, there is good revenue to be generated if the factor has been set up properly.

BANKRUPTCY UPDATE

Trading Bankruptcy Claims … Watch Out for the Finer Points! - Speculating on “bad debt” dates back to colonial times when investors purchased individual claims at a fraction of their value against the strapped colonies with the hopes that the new government would eventually pay the claims in full. While much has changed since then, bankruptcy claims trading is still in practice by sophisticated investors with the acumen to estimate the timing and amount of payment. For sellers, the practice can significantly expedite liquidity, yet it is not with risk.

LEGAL EYES

Ninth Circuit Adopts Equitable Mootness Test for Appeals of Plan Confirmation Orders in Thorpe Insulation - A recurring issue in Chapter 11 cases is the extent to which an appeal of an order confirming a plan of reorganization is rendered moot by events occurring after confirmation. In this article, Lesley Hawes discusses the doctrine of equitable mootness and explains why a creditor should care because the doctrine may determine the creditor’s fate under a confirmed plan.

FINALCUT

FinalCut: Krones Warns of Profit Drop Over Le-Nature’s Fraud - Krones AG found itself "bottled up" when it expressed concerns over company profits caused by Le-Nature's fraud.

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