Traditionally, secured lenders have utilized blocking rights to prevent a limited liability company from filing for bankruptcy before the lenders have recovered the debt. Nancy Peterman explains that two recent court decisions have made it more difficult for lenders to use blocking rights without taking the rights of other stakeholders into account.
The hazards of lending to the midstream diamond and jewelry industry — cutters and polishers, traders, wholesalers and manufacturers — have caused banks that traditionally provided funding to exit the industry. Tom Scotti proposes changes that specialty lenders can enact to provide financing for this segment in a holistic way that benefits all parties.
A strong sense of right and wrong is critical to restructuring a company in a way that benefits all stakeholders. Yet turnaround professional Robert Katz sees “shades of gray” becoming more prevalent and having a negative impact on the industry. He shares examples of these unsavory situations and points out ethical paths to avoid them.
Over the course of his 35-year career, TD Bank Executive Vice President and Head of Asset-Based Lending Joseph Nemia has worked at some of the most storied companies in the business — Chase Manhattan, CIT and GE Commercial Finance, among others. He shares his perspective on today’s ABL world and offers a look back at the days when interest rates spiked at 20% and inflation ran wild.
The metamorphosis of Amazon from a bookseller to one of the largest retailers on the planet has permanently changed the business landscape. Yet ABL lenders have hesitated to lend against inventory held at Amazon’s warehouses. Tiger Capital’s Andy Babcock and Ryan Davis assuage lenders’ fears. They explain how the Fulfillment by Amazon program benefits sellers and creates a seamless, profitable liquidation process for lenders.
Few would argue that today’s ABL market is highly competitive. But a little creativity can give a company that extra edge to capture a deal. When Armada Skis came to Siena Lending to obtain new financing, Director Steven Fuscaldo recognized that PO financing was required as a bridge to cover its merchandise in transit. He called on King Trade Capital, and the two companies created a partnership that benefited all three companies.
The British referendum to exit the European Union has sent shock waves around the world, causing the value of the pound to fall sharply and causing financiers to think of replacing London as the capital of the economic world. ABF Journal contributor Hugh Larratt-Smith speaks to ABL lenders to evaluate the impact of Brexit on asset-based lending.
Guggenheim Investments provides an outlook on the leveraged credit market. Although high-yield bonds and bank loans saw gains in Q3/16, several looming clouds — geopolitical uncertainty, typical fourth quarter volatility and banking sector trouble — may affect risk assets for the remainder of the year.