ABF Journal, March 2006
March 2006

Distressed Debt Market…
Perfect Storm Ahead?

Bracing for the Perfect Storm… is the Distressed

Market Showing Signs of Distress?
By Terry Coleman and Ben Brahinsky, Republic Financial Corporation

Most investors would agree that the distressed market, like most, is cyclical and that in time, default rates will rise. New debt issuances, the amount of capital deployed by hedge and private equity funds and the limited supply of opportunities will combine to create the “perfect storm” for today’s distressed debt newcomer. (Ref # IND074)

Asset-Based Lending in 2005: New Prominence, New Poss–ABL–ities
By Maria C. Dikeos, Loan Pricing Corporation

In 2005, abl deals continued to secure their place as viable, mainstream capital markets alternatives. And issuers were busy — generating more than $69.6 billion in volume for a 37% increase over 2004. (Ref # IND075)

Stronger Strategies for the Not-for-Profit Sector —

it’s no Longer Just About Raising Funds
By Robert D. Katz, Executive Sounding Board Associates Inc.

Times are tough in the not-for-profit world. Where at one time they could count primarily on visiting a wealthy donor and returning with a financial commitment in hand, that luxury today is far from a fait accompli. (Ref # TM050)

Today’s M&A Market…

Six Major Catalysts Influencing the Latest Boom
By Dan DeBrauwere, Bank of America Business Capital

For anyone looking to sell a company, today’s M&A market is ripe with opportunity.
As prospective buyers and sellers consider M&A activity this year, it pays to understand the factors influencing this latest boom.
(Ref # IND076)

Mitigating the Threat of Deepening Insolvency —
the Best Tools for the Job When the ‘Heat is On’
By Michael Cavan, Morris-Anderson & Associates

The term “deepening insolvency” has become the latest industry buzzword to which every turnaround practitioner must pay attention. and although time will tell how this plays out in the courts, the concept is very real with significant implications.
(Ref # TM051)

Keeping it in the CIT Family… A Profile of Mike Brown,

President of CIT Diversified Industries
By Kara A. McDonald, Assistant Editor
In early 2005, Mike brown was offered the opportunity to join CIT Diversified Industries. In this month’s profile, Brown describes his experience thus far with CIT as exciting, fulfilling and fun.
(Ref # EXEC028)

Recovering “Misplaced” Collateral in Multi-Debtor Bankruptcies —
the Musical
By Patrick M. Jones, Lord Bissell & Brook LLP

When the going gets tough, multiple related entities often shift money from thriving subsidiaries to assist their struggling siblings. These undocumented “loans” can create confusion (at best) and effect fraud (at worst). Turn to page 40 for a playful look at what can be done in this, the most dramatic of circumstances any lender would have to face.
(Ref # LGL054)

UCC CapitaL & BCBG Max Azria: Bespoke Transaction for an International Apparel Retailer
By Catherine Twist, UCC Capital Corporation

Recently, UCC Capital Corp. structured a $153 million credit facility for women’s apparel brand BCBG Max Azria, $53 million of which provided financing against the company’s intellectual property assets. The innovative financing structure has garnered industry accolades. (Ref # DLS017)

More Postcards from the Future…

Factors ‘Take to the Tropics’ for Annual Convention
By Bert Goldberg, International Factoring Association

Balmy beaches and warm turquoise waters after a cold, gloomy winter should make the decision to “get away from it all” in a tropical paradise easy to make. On April 5 through 8, the IFA will host its 12th Annual Factoring Conference in Cancun. (Ref # FAC050)