ABF Journal
2009 Conference Issue

Vol. 7, No. 7
Capital Markets Face a New Dawn
Signs of ‘Market Tranquility’ Help to Dispel the Gloom


PNC Economist: ‘Not Out of the Woods Just Yet’
By Amanda L. Gutshall, Associate Editor

As we continue to experience a very long, drawn out and somewhat painful “hangover” from the party days just a few years back, we look to better days ahead. And while there may be some signs of leveling out, a PNC economist says we may not be out of the woods yet. (Ref #GEN018)

ABL Lenders See Improved Liquidity
By Maria C. Dikeos, Reuters Loan Pricing Corporation

Asset-based lenders are feeling good — certainly much better than six or nine months ago. After a rather slow start to the year, some semblance of tranquility has returned to the capital markets. (Ref #IND126)

ABLs, PE Firms Can Find a Perfect Fit
By Sami Altaher, FGI Finance

Traditional lending appears to remain somewhat stagnant until market confidence resumes, but in the interim, the commercial finance community can use this time to step forward and provide credit to the ailing economy. (Ref #IND127)

Harmonizing Your Lender Group…
By Howard Brod Brownstein, NachmanHaysBrownstein

“Speak, hands for me!” So say the Roman senators in the act of stabbing Julius Caesar. Howard Brownstein uses this vivid literary reference to warn agent lenders of a new breed of participants. See page 36 for ways to bring harmony in an age of potential discord. (Ref #IND128)

The Right Combination for Private Equity’s Next Round
By Thomas Bonney, CMF Associates

The opening bell to a multi-round battle for returns on private equity’s portfolio investments sounded September 15, 2008, with the collapse of Lehman Brothers. One year later, the firms that managed to dodge a knockout are transitioning to a new operating environment. (Ref #GEN019)

ABLs Bring Stability, Flexibility in All Economic Seasons
By Gail Bernstein, PNC Business Credit

As PNC’s Gail Bernstein sees it, there is tremendous opportunity for asset-based lenders in the current economic environment, and when the economy does turn around, ABLs are certain to have an increased presence for the foreseeable future. (Ref #IND129)

Determining the Pros & Cons of the Financial Crisis
By Thomas G Siska, Working Capital Solutions

Most factors are finding themselves very busy these days. And while busy is good, Tom Siska notes that the liquidity crisis has hardly turned into the toga party many had hoped for. (Ref #FAC089)



New on the Scene

A Look at 2009’s New Arrivals
By Stuart P. Papavassiliou, Senior Editor

For asset-based lenders, the names and faces are familiar — Ron Donatelli, Drew Neidorf, Bob Corsentino and Bruce Denby — but their new homes are less so. This past summer and in the span of 26 days, the industry witnessed the launch of three new ABL shops. (Ref #COMP032)

Turnaround Corner

Intangible Assets, Tangible Value
By David Johnson, CRG Partners

Leadership and respect go hand in hand, and it’s hard to be successful having one without the other. Therefore, chief restructuring officers need to demonstrate these characteristics from the onset as they set the tone for their company’s ability to meet and even exceed its goals. (Ref #TM098)

Factoring Focus

The Growing South Asian Import Market
By Zilay Wahidy, Sterling Trade Capital

The U.S. apparel importing industry, once dominated by immigrants from Europe, has shifted in the early 21st century to entrepreneurs from South and East Asia. Familiarity with business needs and cultural nuances can drive a factor’s success. (Ref #FAC090)

Bankruptcy Update

Part I of II: The World of Loan-to-Own & Credit Bidding
By Jean R. Robertson and Jeffrey T. Cicarella, Calfee, Halter & Griswald, LLP

We delve into the often-controversial strategy of loan-to-own investments in this, the first installment of a two-part series. The first part examines the strategy as well as the credit bidding process. (Ref #BANK028)

Legal Eyes

Lenders Impacted By Further Changes to Canada’s Insolvency Laws
By Kevin J. Morley, Virginie Gauthier and James Johnson, Ogilvy Renault LLP

A series of significant amendments to Canadian bankruptcy laws, which are designed to more heavily weigh the process in favor of other constituents and thus facilitate a more “balanced” restructuring process, were originally passed in 2005 but never proclaim. Guess what, they’re here. (Ref #LGL102)