As the pool of available credit portfolios has shrunk, many debt buyers have failed to diversify into other types of credit. Michael Flock notes that specialty lenders need to develop new solutions for a wider variety of portfolio asset classes amid increasing regulatory challenges that are changing the playing field.
Lesley Anne Hawes offers insight into Bankruptcy Code preference provisions. Using underpinnings of the Eighth Circuit’s recent decision in the case In re LGI Energy Solutions, Inc., she details the exceptions and defenses to preference recovery, noting that the analysis and rationale of the statute must be applied in a manner consistent with the policies and purposes it was intended to promote.
ABF Journal illustrator Jerry Gonzalez provides his take on the recent bankruptcy filing of Love Culture, a women’s retail chain that owes Salus Capital Partners $13.7 million under a pre-petition credit agreement. Salus will serve as administrative and collateral agent for a lender group for the pending $12 million DIP financing.
Over the past two decades, banking has changed radically. From the rise of interstate banking to new regulation and financial reform, asset-based lending has maintained static — until now. Triune managing director Timothy Alexander asks, “Can you teach an old ABL dog new tricks?”
ABF Journal illustrator Jerry Gonzalez provides his take on Rodney Watts’ scheme to defraud Amalgamated Bank of $2.1 million fraudulent loans.
While a borrower’s offer to hand over the keys may be enticing, it is frequently the beginning of lengthy negotiations between the lenders over the terms and conditions of the proposed transfer, and the structure and governance of the acquiring entity.
Not only are U.S. vendors and manufacturers seeking international invoice factoring solutions, but so are sellers around the globe. Henry Grace explains how the impact of the Great Recession caused U.S. Financial to shift its emphasis away from more traditional forms of financing to using invoice factoring as a way to facilitate international trade for its customers.
Deloitte CRG’s Rudy Morando and Sugi Hadiwijaya give insight into managing a distressed company in a liquidity crisis. Accepting the challenge and becoming a leader for change are important steps towards company rehabilitation. They note that having the right mindset and tools to address the challenge can be the difference between a successful recovery and a failed business.
With a year under its belt, Revere Finance is carving a place for itself in the ABL world. No strangers to secured lending, the bank’s head executives worked for years at sister entity and distressed asset management company PPL Group. Now, Revere is delving deeper into providing ABL solutions for small- and middle-market businesses nationwide — taking risks where other banks and lenders fear to tread.
Since PO funding is transactional and specific to end customer purchase orders, a company is able to access additional capital to sustain incremental growth or seasonal sales even when its balance sheet won’t support additional borrowings from a traditional lender.