In Part 2 of this two-part series, Robert B. Stein probes deeper into the topic of split collateral intercreditor agreements, honing in on DIP financing and adequate protection, limitations on modifications to loan documents and the purchase option.
Attorney Lesley Anne Hawes examines a recent Eighth Circuit Court of Appeals opinion reaffirming the established principle that secured creditors’ liens pass through bankruptcy unaffected. She notes that the decision is helpful to secured creditors because it confirms at the federal circuit level this important attribute of lienholder status in bankruptcy cases.
The intricacies involved in the Orchard Supply bankruptcy provide guidance to debtors and creditors about the need to balance the competing interest of lenders, purchasers and stakeholders when it comes to debtor-in-possession financing.
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.
Brian Phillips and Scott Eisenberg of Amherst Partners note that fraudulent activity was uncovered in nearly every significant financial advisory case the firm has encountered over the last two to three years. Here they present two cases (one hypothetical and one real-life) and offer five lender techniques to help reduce bank fraud.
ABL facilities allow borrowers to obtain higher leverage at a lower cost compared to cash-flow-based term debt, while also providing certainty of execution and a flexible covenant package. Paul Hastings attorneys Mario Ippolito, Peter Burke, Jennifer Yount & Shafiq Perry examine the key negotiated terms of an ABL facility in the context of a leveraged finance transaction.
The Marciano decision is an important ruling for creditors that may be considering an involuntary petition. As Lesley Hawes explains, there is limited reported case law addressing involuntary petitions, and this decision creates an easy-to-follow, bright-line test for determining whether a petitioning creditor with a judgment that is on appeal but not stayed has a claim that satisfies the requirements of §303(b)(1) of the Bankruptcy Code.
When MainStream Management’s Jim Burritt and his colleagues entered GLC Limited’s warehouse, they were stunned to find a rodent-infested mish-mash of food items, chipped pottery and clothing, instead of the appliances they expected. After investigating GLC Limited’s business practices and inventory, MainStream ultimately revealed a Ponzi scheme that had bilked investors out of millions of dollars.
The Le-Nature’s saga is one that has continued for years. Recently, Marc Kirschner, in his capacity as the trustee of the company’s liquidation trust, has gone up against K&L Gates and others that have represented the company. Here, Hinshaw & Culbertson’s Terrence McAvoy summarizes the latest in the case.
The ABF Journal last met with Stuart Brister in 2010 to discuss the ABL “powerhouse” called Wells Fargo Capital Finance that resulted from the Wells Fargo-Wachovia merger. Today, we ask Brister, president of the Trade Capital Finance Division, and John Marrinson, regional credit manager of the Purchase Order Finance Group, to discuss how the acquisition and the global and domestic economies have affected the company’s international finance endeavors.