NAVIGATING ENERGY VOLATILITY: Understanding the Principles of Commodity Risk Management

Lending in commodity sectors has always been a risky business, but since the 1980 energy deregulation, market volatility has increased. Borrowers who fail to create effective risk management plans can create headaches for their lenders. John Echols and Greg Crowley make a case for effective commodity risk management.

PREPACKAGED FILINGS ARE FLYING THROUGH BANKRUPTCY: Is That Really a Good Thing?

Prepackaged restructurings are allowing companies to fly through Chapter 11 at breakneck speed. Michael Eisenband examines some recent cases and explores the ramifications and accommodations made by lenders.

August 2019

August 2019
Risk Management
Vol. 17 No. 5

BUILDING GRASSHOPPER BANK FROM THE GROUND UP: New Digital Venture Bank Prepares to Fully Launch

Judith Erwin was looking forward to a hiatus from banking after Square 1 Bank — where she was a member of the founding team — was sold to Pacific Western. Instead, the prospect of building a bank with a digital foundation from scratch lured her back into the business.

STRONG MARKET TAILWINDS PROMISE BRIGHT FUTURE FOR AVIATION LENDING

For passengers, the thrill of flying has dimmed as we’ve been shoehorned into seats and charged for our in-flight beverages. Yet Jennifer Villa Tennity points out that despite these inconveniences, air travel is still booming. For aviation lenders, this is very good news.

DIGITAL SOLUTIONS TO ABL DILEMMAS: Streamlining the Lending Process Through Technology

For many borrowers, asset-based loans are a lifeline, providing access to working capital that supports their businesses. But no one would deny that the loan process and follow-up monitoring is archaic and cumbersome. Craig Sproule explains how “no code” digital solutions can change the process and create a more efficient, cost-effective ABL lending platform.

DON’T WAIVE WAIVERS IN LOAN DOCUMENTS

Jeffrey Wurst cautions lenders “to plan your divorce before you get married,” when preparing loan documents. Incorporating waivers is one way to avoid subsequent litigation. A Texas case illustrates how even unenforceable waivers can strengthen a lender’s position.

BURNLEY CAPITAL LAUNCHES TO PROVIDE BORROWERS WITH MORE THAN A CHECKBOOK

Burnley Capital, a new ABL lender, is a partnership between a lender in Boston and a management consultant in Minneapolis, but thanks to the wonders of modern technology, the pair are able to work together without relocating. They offer borrowers more than a checkbook; the company sees the value-added assistance it provides as a way to help borrowers succeed.

TAKING THE TEMPERATURE OF THE BOARD OF DIRECTORS: Why Lenders Should Pay More Attention to Their Borrowers’ Corporate Governance

A strong, independent board of directors can help keep a company on the right financial track. Howard Brod Brownstein, who sits on several corporate boards himself, urges lenders to take a hard look at a borrower’s board of directors before extending a loan or agreeing to forbearance. Brownstein makes a case for lenders to insist on corporate governance before handing over the cash.

June 2019

June 2019
Technology Issue
Vol. 17, No. 4