While ESOPs offer an attractive financing structure, it is important for borrowers to make sure that an ESOP is right for their company’s strategic goals. Ty Dealy, managing director at Monroe Capital, offers tips for CFOs when considering an ESOP financing.
The results of Phoenix Management’s Q1/13 “Lending Climate in America” survey showed improvement in all metrics. However, lenders’ optimism waned in Q2, as the survey indicated substantial moderation in expectations for commercial lending relative to the previous quarter.
In his analysis of this year’s second quarter survey results from The National Center for the Middle Market, GE Capital’s Robert McCarrick notes that mid-market executives are optimistic about their prospects for growth, are ready to invest capital and plan to add workers, despite concerns about rising healthcare costs and the likely return of more costly credit.
The Court of Appeals for the Ninth Circuit has joined other circuits in holding that the bankruptcy court has the authority to re-characterize a debt obligation as equity in the context of a fraudulent transfer avoidance action under the Bankruptcy Code. For third-party, non-insider creditors, the Fitness Holdings decision is a helpful tool to restore assets to the debtor’s estate that were transferred to the holder of an equity interest in the guise of a debt repayment.
ABF Journal illustrator Jerry Gonzalez offers his portrayal of the Chapter 11 filing by vacuum manufacturer Oreck – assets of which are subject to a lien securing a $20 million line of credit from a lender group led by Wells Fargo – and the Oreck family’s bid to reclaim the company from Black Diamond Capital Management.
The 2013 International Factoring Association (IFA) Business Profile and Performance Survey was distributed to about 1,500 factoring industry members in the U.S. and Canada in January 2013. The purpose of the study was to provide information that can be used by members to benchmark their own performance metrics and better identify operating practices and trends.
Secured lenders face difficult choices when a debtor’s reorganization plan fails to achieve defined goals. However, taking the time to explore alternative approaches — such as an out of court orderly liquidation — could result in a better outcome than expected.
ABF Journal contributor Lisa Miller caught up with Dan Chapa, CEO of Healthcare Finance Group, to discuss the company’s recent acquisition by Fifth Street Finance and what it will mean in terms of future growth now that HFG has the added advantage of being affiliated with a public company that has access to capital.
Michael Charleston, Bayside Business Solutions program manager, outlines how lenders can adapt to a fast-paced, data-rich environment by utilizing portfolio management systems that customize controls and workflows to meet the unique requirements of each collateral type on a deal-by-deal basis.