As the pace and timeframe with which Chapter 11 filings are processed becomes condensed, commentary — both good and bad — has focused on the role of the prepackaged bankruptcy. Kevin Lombardo says that while prepacks have their place, firms must “tread lightly” on this insolvency path that’s gaining in popularity.
ABF Journal illustrator, Jerry Gonzalez’ visual interpretation of a top-ranked abfjournal.com news story according to our visitors.
January/February 2010 Issue
Vol. 8, No. 1
Annual Risk Management & Fraud Prevention Issue
In October 2009, the Federal Trade Commission, at the request of Congress, delayed the enforcement of the so-called “Red Flag” rules geared to address the risk of identity theft until June 1, 2010. That date is important to financial institutions as failure to comply opens the door to legal aggravation including civil monetary fines and lawsuits.
Business Continuity planning is an integral and important part of running any type of company. The process is not complicated, however it is time consuming and requires proper project management. It is a good idea to get outside help with the project design and management, unless your company possesses both the expertise and time required to create a robust and effective BRP.
With a career at a variety of leading factoring organizations, Darla Auchinachie knows her way around the industry. Now as a consultant, she aids those companies that benefit from her insight — and for that reason ABF Journal asked Darla for her thoughts on the industry now that the economy seems better poised for a recovery.
As we begin a new year, Stevan Buxbaum urges secured lenders to take advantage of the great opportunities that exist in tumultuous times. But, he advises, such opportunities will only pan out if approached with discipline, diligence and perhaps most importantly, the realism that was lacking in the days of irrational exuberance.
When considering your organization’s approach to detecting, eliminating and preventing fraud, trust your intuition and suspicions, and take a hard look into the facts surrounding any gut feeling you have. Put practical procedures in place, then monitor the environment in high-risk areas. When it comes to fraud, it’s not a matter of “if” it will happen, but rather, of how well you are prepared when it does.
For Barry Kastner it’s always been a matter of trusting his instincts and striking the right balance. And it’s no surprise that the 33-year veteran of Congress Financial and its successor, Wachovia Capital Finance, assimilated the qualities of strong credit discipline and a customer-centric approach to find himself in the top ABL spot at America’s ‘most convenient bank.’
Field examiners may spend a considerable time scrubbing a borrower’s trade accounts receivable (A/R). Often the resulting ineligibles proposed are met with the following question “Isn’t this all covered by dilution?” Knowing the answer to the question is critical to ensuring that the borrowing base formula adequately protects an asset-based lender.