For the third year in a row, ABF Journal polled senior lenders from leading asset-based lending shops. And while last year, survey participants reported the somber beat of an economy in recession persisted, the sentiment seems to have sweetened in the time that has passed.
Missing deadlines, poor data and information flow, and reworking previously completed borrowing bases and valuations engender costs that fall heavily on service providers, but also impact the resources of a lender. Deals subject to extensive delays form a poor foundation for future cooperation between the lender and the company. The following article offers five point to consider in order to avoid a drain on resources — financial or otherwise.
Each year at this time, we at ABF Journal like to check in with leading asset-based lenders for a review of the year that’s been and a look forward to the one ahead. It became clear that we are on the brink of something promising as we push further into 2010; but with lenders and borrowers still testing the waters, it’s not entirely clear when they’ll take the plunge. What seems fairly certain, however, is that when they do, they may not dive as deep as they once did.
ABF Journal illustrator, Jerry Gonzalez’ visual interpretation of a top-ranked abfjournal.com news story according to our visitors.
ABF Journal illustrator, Jerry Gonzalez’ visual interpretation of a top-ranked abfjournal.com news story according to our visitors.
On March 22, 2010, the Third Circuit Court of Appeals, which covers the districts of New Jersey, Pennsylvania and Delaware, issued a decision that is of ground breaking importance to secured lenders. This decision arises out of the Philadelphia Newspapers, LLC1 bankruptcy case pending in the Eastern District of Pennsylvania and seriously affects the right of secured lenders to credit bid in a sale effected in connection with a plan of reorganization.
Given the extraordinary credit crisis American businesses have been weathering, we thought that Merchant Factors’ outlook on various borrower sectors is an excellent barometer for commercial finance companies. Adam Winters, the company’s president and CEO offers a sector by sector report card. Some sectors move to the head of the class, some show scant improvement and others aren’t making the grade.
Recommending a liquidation can be among the most painful decisions a turnaround professional is forced to make, but it can also be among the most impactful in terms of preserving value. With preparation and a detailed plan, a liquidation can be carried out in an orderly manner that will maximize financial recovery and minimize disruptions to all parties involved.
Field examiners may spend a considerable time scrubbing a borrower’s trade accounts receivable (A/R). Often the resulting ineligibles proposed are met with the following question “Isn’t this all covered by dilution?” Knowing the answer to the question is critical to ensuring that the borrowing base (Bbase) formula adequately protects an asset-based lender. ABF Journal’s coverage on field examinations concludes with the final part of this three-part series.
As forensic accountants work to piece together what’s left of the company, and fleet lessors comb the country for missing trucks, the three executives blamed for orchestrating the multimillion factoring fraud that brought Tulsa-based transportation firm Arrow Trucking Co. to its knees are busy pointing fingers at each other. Using court records, press reports and the statements of those involved, ABF Journal attempts to untangle the convoluted mess that was Arrow Trucking.