In an exclusive Q&A with ABF Journal publisher Jerry Parrotto and New York Institute of Credit managing director Harvey S. Gross, U.S. Bankruptcy Judge Michael B. Kaplan shares his thoughts on corporate restructuring in the post-credit crisis environment.
With revenue growth among middle-market companies picking up by the end of 2012, according to a recent survey by The National Center for the Middle Market, Tom Quindlen, president and CEO of GE Capital, Corporate Finance, explains that the sector finally might be turning a corner and preparing for better days.
Bankruptcies of major shipping companies over the last few years have furnished guidelines for conducting a successful reorganization and restructuring. Blank Rome’s Stephen T. Whelan and Marc E. Richards identify a few pitfalls and positive lessons to be gleaned from these recent cases.
The First Circuit’s decision in Malley v. Agin highlights an ongoing conflict among the federal circuit courts regarding the scope, nature and extent of the bankruptcy court’s equitable powers under §105(a) of the Bankruptcy Code. While the issue cries out for a definitive ruling by the U.S. Supreme Court, it is uncertain when and if one of these cases will reach the high court because the dollar amounts involved are often modest, as this case illustrates.
In this edition of ABF Journal’s Legal Eyes, we get a glimpse into the world of security interests in spectrum rights. For lenders and borrowers in this space, this is common knowledge, but to others, the case of Valley Bank & Trust Co. v. Spectrum Scan LLC sets a well-reasoned precedent that, as Cadwalader’s Michael Jay Cohen says, lifts the cloud on media and telecom lenders’ expectations that exists prior to this most recent decision.
FEATURES PROFILE OF SUCCESS FROM ALL FACETS TURNAROUND CORNER SPECIALTY LENDING SHOP BANKRUPTCY UPDATE LEGAL EYES FINALCUT
In analyzing the asset-based lending market at the dawn of a new year, David Gaito, SVP and regional sales manager of PNC Business Credit, notes three significant factors: 2012 was not as bad as advertised, a supply/demand imbalance remains and ABL potential in 2013 is mixed. Prudence, he notes, will be key to short- and long-term success.
RMP Capital’s James DiCamillo notes that 2012 was characterized by historically low interest rates that made earning a profit somewhat challenging. Looking ahead, DiCamillo says banks have continued their retreat in the small business sector, even though many enterprises that would be candidates for financing pose only a fair level of risk. As a result, more business owners in this category appear to be discovering commercial finance as a serious option.
Fraud not only costs a company money, but also can affect its relationship with shareholders, employees, customers, vendors and financial institutions. Riveron Consulting’s Andy Baker explains how strong policies and consistent oversight can go a long way toward minimizing the possibility of fraud.
While all indicators, including recent articles in ABF Journal, pointed to the fact that activity decreased in 2012, KeyBank Business Capital’s Laurie Muller-Girard has noted that for the company, asset-based lending increased prompting the company to expand its division with new personnel to cover the growing market.