Lowenstein Sandler’s Ken Rosen addresses section 363 of the Bankruptcy Code, a provision that permits a bulk sale of all debtor assets. He asserts that rapid sales deprive debtors of the ability to utilize the tools of Chapter 11, which is not what Congress intended.
Clear Thinking Group’s Lee Diercks shares proactive strategies asset-based lenders can take to minimize
risk while supporting consistent growth. He suggests enlisting the help of third-party financial advisors
and underwriters, requiring a solid business plan from borrowers and focusing on strategy, execution
and revenue generation.
Monroe Capital CEO Ted Koenig writes that, while signs point to a credit cycle entering its final stages, he expects a softer landing than in 2007. Attractive investment opportunities for non-bank lenders, ABLs and other non-regulated credit providers are expected to continue, as the new landscape emerges.
Executive Sounding Board Associates Director Michael Dervis says investors new to the middle market distressed segment should educate themselves on the challenges as well as unique opportunities inherent in this unique sector before taking the plunge.
External pressures coupled with a lack of planning/forecasting can lead companies to distress. Vipul Adlakha and Kyle Richter, Deloitte Transactions and Business Analytics SVPs, discuss why analytics are vital to middle market companies, and highlight the importance of establishing strong data governance and financial planning strategies.
The founders of Alderney Advisors discuss the underlying causes of financial distress, barriers to successful turnarounds and why advisors seeking viable restructurings cannot stop at the balance sheet.
Here’s the predicament: Who can handle the crisis management role? This is a predicament. Clear thinking must prevail and a special set of skills must be applied. If there is a qualified leader within the company, then delegate the job of turnaround to that person — and provide proper support. If there is not a qualified leader in the company — and there usually isn’t — go outside to locate this type of professional.