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12mayjun

May/June 2012

ABL Marketplace Issue
Vol. 10 No. 4
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FEATURES

ABLs in Uncertain Times: Sorting Risk From Opportunity In Today’s Fragile Recovery - ABF Journal spoke with leading executives, primarily from bank-affiliated ABLs, to get their perspective on where we might be headed through the remainder of this year and into 2013 and beyond. While most ABLs seem to agree there’s room for cautious optimism, the uncertainty surrounding a wide variety of factors — ranging from energy and commodity prices, to housing starts, to the viability of progress on the euro-zone debt crisis, to the uncertainty surrounding the vagaries of an election year — gives many a sense that progress will be limited until resolution is gained.
2012 ABL Marketplace Survey: Lenders Voice Concern Over Regulatory Oversight, Irrational Behavior - In ABF Journal's 2012 Marketplace Survey, participating lenders showed little restraint in voicing their dissatisfaction on what they perceive to be a troubling trend - the return to "irrational pricing" and "undisciplined behavior." And competition isn't the only concern with this year's respondents.
Back in the Game — Second Liens Taking Control in Distressed Situations - Regardless of the ultimate form of the transaction, recent history has shown that second lien debt has increasingly become a popular means of currency to take control of underperforming and overleveraged companies. These types of transactions will continue to become more prevalent as more participants enter this arena through the continuous raising of distressed fund capital. In addition, the success that some funds have had using these tactics will lead to their increased use in other distressed situations.
The ‘Other End’ of the Market: Increased Competition Indicates a Fertile Playing Field - In this year’s ABL Marketplace issue, ABF Journal gives equal voice to the “other end” of the market — namely to the deals $20 million and under. As such, we invited Bridge Bank’s Darla Auchinachie, Marquette Business Credit’s Guy Camerlengo, MidCap Business Credit’s Seth Cooper and AloStar Business Credit’s S. Scott Simmons to provide an outlook on what turns out to be a fertile playing field.
Villanova 2012: Post-Recessionary Lending and Credit Observations - At the fifth annual Education and Networking Conference sponsored by the New York Institute of Credit, Turnaround Management Association/Philadelphia chapter, the Commercial Finance Association/Philadelphia chapter and the ABF Journal, five ABL leaders offered their perspectives on post-recessionary lending and credit. Participating on the panel, moderated by Blank Rome’s Paul Shur, were Richard Bochicchio, managing director, […]
Anatomy of a Turnaround — Downey Regional Medical Center Exits Bankruptcy Healthier Than Ever - In March of this year, Downey Regional Medical Center in Los Angeles County successfully emerged from bankruptcy as a healthier and stronger healthcare provider. Key to the success was the assembling of a team of professionals who could see beyond the problems of the past and focus on finding the solutions.
From Gaining Market Share to Regulatory Compliance TD Bank’s Greg Braca, Joe Nemia Say It’s Full Speed Ahead - In March of this year, TD Bank announced its veteran banker in the metro-New York area Greg Braca would assume the post as head of Corporate and Specialty Banking. Some six months earlier, Joe Nemia joined the bank to lead its ABL group. Here, the two discuss everything from future plans for the unit to the bank’s ability to embrace the realities of doing business in a highly regulated environment.

FROM ALL FACETS

TURNAROUND CORNER

Steering Clear of the Brink Early Warning Signs Can Pinpoint Business Troubles - When a company is headed for trouble, all stakeholders share the added risk. Directors and top management are often aware that problems exist, yet they delay in correcting them. This denial is often veiled in stubborn corporate pride. Yet it renders board members and even upper management unable to recognize the key warning signs that suggest a company is on its way toward trouble. Yet, all is not lost. There are ten common early warning signs that mark a company heading for trouble.

SPECIALTY LENDING SHOP

Filling the Gap … With Enthusiasm A Conversation With Leonard Tannenbaum, CEO of Fifth Street Finance - Leonard Tannenbaum, CEO of Fifth Street Finance Corp., shares with the ABF Journal his experience in successfully taking his business from lender to publicly traded business development company — right when the bottom dropped out of the economy in 2008 — and his forecast for middle-market lending and M&A activity for the remainder of 2012.

BANKRUPTCY UPDATE

No Equitable Tolling of Section 548 ‘Look-Back’ Period - In re Pitt Penn Holding Co., Inc. clarifies that even in a court of equity and despite colorable claims of concealment on the part of an avoidance-action defendant, there are limitations on the power of a bankruptcy court to invoke the doctrine of equitable tolling. In the following article, Haben Goitom from the Business Restructuring and Reorganization practice at Jones Day provides great detail.

LEGAL EYES

Secured Lender Loses to IP Owner in Dispute Over Proceeds of Trademarked Inventory - In Variety Wholesalers, Inc. v. Prime Apparel, the borrower sold to a customer certain goods that incorporated a trademark owned by the borrower's vendor. This case highlights an often overlooked category of risk for secured lenders — the risks associated with financing inventory sold in violation of third-party intellectual property rights.

FINALCUT

FinalCut: Delaware Bankruptcy Court Confirms Lenders in Multiple-Level Financing - Instead of an illustrated news story, Jerry Gonzalez takes us to where the wild things are…



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