To conclude her three-part series intended to de-mystify the workout banker’s motivations, Kristina Anderson of Carl Marks Advisory Group examines some of the dynamics inside senior lender syndicates and how those dynamics affect the syndicate’s ability to respond in workout and default situations. As Anderson notes, distress doesn’t necessarily have to lead to war.
There was something fishy going on at Massachusetts-based Ocean Fresh Seafood, and it wasn’t just the inventory. By the time Wells Fargo auditors found the source of the smell, they’d been defrauded out of at least $7 million, and the man who allegedly orchestrated the scheme was in the wind. Here’s how it played out…
Whether you perform your due diligence internally or outsource it, it is important that you do your due diligence before you enter into any lending or factoring agreement. A little homework on the front end will result in a healthy portfolio that is easily managed. More importantly, it will reduce your exposure to unnecessary risk.
Loan economics are just one of many factors influencing the workout banker’s decisions in the complex arena known as commercial bank workouts. Workout bankers in many commercial banks manage risk, not just loans. Kristina Anderson continues her discussion on de-mystifying the workout banker’s motivations.
Special required notices to guarantors and other byzantine defenses help to explain why so many guaranties are practically unreadable and why many are loathe to make changes to these documents. Take the much-examined case In Re TOUSA, Inc…
The old saws, “A down economy makes fools of us all,” and “Restaurants are first and last out of a recession,” might be appropriate, but if you own a large food and beverage business — either intentionally or accidentally — you don’t have to play the victim. But what you first have to do is figure out whether you are a have or have-not and make sure you come out alive.
The next few months may be challenging ones for American retailers. The Consumer Confidence Index, measured by the Conference Board, plummeted for the third time in four months in September, dropping to 48.5 — the lowest rate since February 2010. The uncertain economy does not bode well for the upcoming 12 months either. BDO Capital Advisors’ Jeffrey Manning and Cooley LLP’s Jay Indyke team up to offer some steps retailers can take to avoid liquidation.
The seismic shift in the scope and scale of overseas manufacturing continues to create opportunities for asset-based lenders. Seizing those opportunities, however, is more complicated — and risky — than it was during the era when inventory was produced, shipped and sold primarily in the United States.
In Part I of this two-part article, Ken Naglewski of Seabiscuit Partners, opined that a chief restructuring officer (CRO) needs to be at least equally adept at behavioral psychology as she or he is in restructuring and turnaround strategies and tactics and be politically astute. In Part II, the author examines further the difficulties encountered in restructuring situations caused by the realities of organizational dynamics and human behavior, and provides some tactics that have proven successful in distressed situations.
The economy is generally on the mend, yet many SMEs in Canada are still finding it hard to get the credit and financing they need to move their businesses forward. The saying, “It takes money to make money,” is being heard more and more every day. Why is this?