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.
ABF Journal illustrator Jerry Gonzalez provides his take on GE Capital’s agreement to provide a $20 million revolver to Imation in Japan, where asset-based lending is a relatively new form of corporate funding.
Varying definitions under different UCC Articles can conceivably cause a party to be governed by a different “good faith” standard in the same relationship. As Paul Shur explains, an awareness of these issues and the benefits of a uniform standard should be goals of practitioners and legislators.
Recently the Office of the U.S. Trustee issued new guidelines for the payment of attorneys’ fees and expenses in Chapter 11 cases with $50 million or more in assets and $50 million or more in liabilities. According to K&L Gates’ Trey Monsour, compliance will be subjective and likely expensive for attorneys in large Chapter 11 cases, with the debtor ultimately bearing the additional costs.
As many companies turn to outsourcing in order to improve processes and reduce expenses, Gateway Commercial Finance expanded its sub-servicing reach by launching Sentinel Portfolio Solutions.
In an exclusive interview with ABF Journal, Ken Yager talks about why he launched Newpoint Advisors Corporation to help companies in the small to lower mid-market by employing a unique business model dedicated to delivering responsive, personal and cost-effective services to businesses experiencing financial distress.
ABF Journal spends time with Joseph Gaffigan to discuss how he is building TCF Bank’s national commercial finance business by focusing on the lower middle market, developing a strong portfolio and supporting clients’ growth by stressing responsiveness and customer service.
In this year’s Turnaround Managers’ Survey, respondents provided a sense of their collective outlook for the coming year with optimism showing up in new opportunity forecasts and a domestic boost anticipated as a result of emerging European economies.
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.
As the length of the turnaround process shrinks, the ability of a team of advisors to work in concert under sub-optimal conditions is a necessity. While few stakeholders in a distressed situation can bring a holistic view of the solution, the collective experience and expertise of key players can lead to a positive outcome in a distressed situation.