Category: ABF Journal Cover Stories

Looking for the Best Outcomes… Early Warning Signs of Troubled Companies

In a Q&A with ABF Journal, Carl Marks partner Joe D’Angelo discusses some of the many warning signs of trouble that companies face, including liquidity crises, negative performance variances, delayed monthly reporting and others. Ultimately, he says timing is critical — if you have more time, there will be more options and alternatives to improve troubled businesses.

Downturn Plus Four Years — State of the Capital Markets

Contributing editor Howard Brod Brownstein talks to five leading ABL capital markets players about market conditions now that the official end of the downturn is four years behind us. All agree that market conditions are extremely competitive — comparable to before the financial downturn — and that this trend will continue for the foreseeable future.

2013 ABL Volume Weighed Down by Refinancings

At just over $57 billion, Q1/13-Q3/13 ABL volume is comparable to the same period last year. However, less than 21% of ABL lending this year represents new loan assets. In a trend consistent with that of the broader leveraged loan market, lending during both years was heavily weighted toward refinancings, as issuers push out maturities and reduce spreads on existing credits.

Strategic Orderly Liquidations… Maintaining Value While Exiting Troubled Loans

There are times when a forced liquidation seems to be the only way for asset-based lenders to recuperate outstanding loan balances. However, Bob Maroney of the Gordon Brothers Group explains how his experience has shown that asset-based lenders frequently have more options than they realize in dealing with distressed scenarios, and the temptation to move too quickly to a forced liquidation can result in significant — and, moreover, avoidable — destruction of value.

Anatomy of a Turnaround — The Successful Revival of ‘Storied’ Manufacturer Milacron

In April 2012, storied but struggling manufacturer Milacron was sold to CCMP Capital. In February 2013, Milacron announced the acquisition of Mold-Masters for $975 million. Contributing to Milacron’s successful turnaround were a strong portfolio of products and recognized industrial brand names and a comprehensive strategy to exploit its offerings and to engage talented management to execute the plan.