In the following article, SmithAmundsen bankruptcy attorneys Patrick Jones and William Hackney suggest that in some distressed situations, it might be time for lenders to take a different tack. Rather than engaging in a fight, a lender might consider “riding the horse in the direction it’s headed” to his or her advantage.
The losses lenders experience at the hands of dishonest borrowers can be a very large proportion of the total loans outstanding, and can monopolize a significant amount of lender time. The use of field exams and other financial reviews can help to identify problems at an early stage, thereby allowing the lender time to take action to protect its exposure.
Regardless of the reason, when your business encounters serious challenges, your world shifts. These shifts occur on multiple fronts. One of the most important shifts is on the communication front, and how you interact with financial stakeholders — in particular your lenders, but also your investors, vendors and even employees.
ABF Journal illustrator, Jerry Gonzalez’ visual interpretation of a top-ranked abfjournal.com news story according to our visitors.
With Article 9 provisions changing and inconsistencies among the codes of various jurisdictions, maintaining a secure position can be a complex responsibility. Bottom line, secure positions are the lifeblood to an asset-based lender and an understanding of changing regulation is critical to success.
To conclude her three-part series intended to de-mystify the workout banker’s motivations, Kristina Anderson of Carl Marks Advisory Group examines some of the dynamics inside senior lender syndicates and how those dynamics affect the syndicate’s ability to respond in workout and default situations. As Anderson notes, distress doesn’t necessarily have to lead to war.
There was something fishy going on at Massachusetts-based Ocean Fresh Seafood, and it wasn’t just the inventory. By the time Wells Fargo auditors found the source of the smell, they’d been defrauded out of at least $7 million, and the man who allegedly orchestrated the scheme was in the wind. Here’s how it played out…
Whether you perform your due diligence internally or outsource it, it is important that you do your due diligence before you enter into any lending or factoring agreement. A little homework on the front end will result in a healthy portfolio that is easily managed. More importantly, it will reduce your exposure to unnecessary risk.
ABF Journal illustrator Jerry Gonzalez depicts the sale of KBC Business Capital to PNC Business Credit, the asset-based lending arm of The PNC Financial Services Group.
When putting together and closing any asset-based lending deal, the ingredients that are needed include patience, communication, and capital, but most importantly for both the lender and the borrower, it requires teamwork. And it was a great amount of teamwork that led to the closing of a $350 million ABL for O’Neal Steel, led by U.S. Bank Asset Based Finance. We caught up with U.S. Bank’s Sam Philbrick and O’Neal Steel’s Michael Rowland to get the details of the deal.