Recently added articles from The Secured Lender:
letter from: THOUGHTS FROM CFA AND TSL STAFF
Nov 01, 2008; ... As we go to press in midOctober, the credit markets have been rocked by massive turmoil and uncertainty, major financial institutions with storied histories have fallen victim to Insolvency and consolidation, and our once dynamic U.S. economy teeters on the precipice of ...
Quarterly ABL Index Indicates Big Jump in New Credit Commitments
Nov 01, 2008; ... The Commercial Finance Association's "Quarterly Asset-Based Lending Index, Q2 2008," revealed a dramatic 16.2 percent increase in new credit commitments in the second quarter. Furthermore, 75 percent of reporting assetbased lenders saw an increase in total credit commitments. This, ...
2008 Public Company Bankruptcies Surpass 2007 Level
Nov 01, 2008; ... September's mammoth Lehman Brothers Holdings' Chapter 11 bankruptcy filing has dominated worldwide news-thrusting U.S. Bankruptcy Court proceedings into the international spotlight. While this case certainly is recordshattering in terms of its colossal size, there was yet another significant ...
Risk of Bankruptcy High Among Auto Industry Suppliers
Nov 01, 2008; ... Lower industry volumes and the massive decline in truck and SUV sales have put as many as one-third of automotive suppliers in North America at risk of bankruptcy, according to the Summer 2008 Automotive Industry Review prepared by Grant Thornton LLP Corporate Advisory and Restructuring ...
Recoveries on Defaulted Bank Loans Could Fall Below Norm
Nov 01, 2008; ... Given the lack of subordinate debt in capital structure of the current vintage of leveraged companies, recoveries on the next round of defaulted bank debt could be far lower than historic averages, says a new report by Moody's Investors Service. "The unprecedented wave of bankloan ...
Asset-Based Lending Goes Mainstream
Nov 01, 2008; ... Today, asset-based lending is no longer considered the also-ran in U.S. commercial financing. The recognition of this type of secured lending as a viable and trusted product, in addition to its ability to weather the changing economic conditions, has taken ABL mainstream. As banks cut back on ...
dance of the propeller heads
Nov 01, 2008; ... Factors and asset-based lenders are in an unprecedented position to capitalize on the tight credit markets right now. So much so, that this recession may just be paradise for some. "This is the best recession I have been in," said Mark Landes of Gateway Finance, a purchase-order (PO) ...
ACQUISITION THROUGH CREDIT BIDDING: A bankruptcy advantage for the secured lender
Nov 01, 2008; ... The drill is all too familiar in today's real estate environment: senior secured lenders acquiring title to their real-property collateral by credit-bidding at the foreclosure sale. Although institutional lenders typically credit-bid defensively, some entrepreneurial investors may even view ...
The State of the Factoring Industry
Nov 01, 2008; ... UNCERTAINTY IN THE RETAIL MARKET HAS INCREASED THE DEMAND FOR FACTORING. FACTORS, IN TURN, ARE WATCHING THE FINANCIAL PERFORMANCE OF THOSE RETAILERS EVER MORE CLOSELY TO REACT ACCORDINGLY IN AN EFFORT TO CUT THEIR OWN LOSSES IN THE EVENT A RETAILER BECOMES INSOLVENT No doubt, 2008 has ...
The Changing Landscape of the Restructuring Industry
Nov 01, 2008; ... With the current economic woes and fears of a lengthy recession, those in the bankruptcy and restructuring world are not only facing a busy workload, but an ever-changing landscape. The capacity to deal with the sheer number of deals is going to be the biggest challenge facing professionals in ...
DRAW YOUR SWORDS en garde: The Right Side of the Balance Sheet in a Time of Turmoil
Nov 01, 2008; ... The legacy loans with weak structures and tight pricing are now a thing of the past. The swordfighting that we'll see in 2009 among lenders and investors in the capital structure will leave so many scars that no one will be rushing to do covenant lite and toggle deals anytime soon. One ...
A Diamond is Forever...But the hard-hit jewelry industry is in a state of flux
Nov 01, 2008; ... Jewelry is an older, traditional industry few outsiders easily understand. With jewelry retailers hit by the economic slowdown, asset-based lenders need to learn about this industry's internet competition and inventory methods to minimize risk. Retailers focused on discretionary ...
HOW LENDERS CAN AVOID EQUITABLE SUBORDINATION
Nov 01, 2008; ... Bankruptcy Code § 510(c) provides that a bankruptcy court may, "under principles of equitable subordination, subordinate for purposes of distribution all or part of an allowed claim to all or part of another allowed claim" (11 U.S.C. § 510(c)). Generally, the courts have set forth a three-prong ...
The Long-Forgotten Bonded Field Warehouse: Making a Comeback?
Nov 01, 2008; ... Bonded warehousing, a once-popular, but nowforgotten, means for banks, manufacturers and finance companies to secure, control and monitor their collateral located at their borrower's location, remains a viable option. With the softening economy and concern about collateral risk, the time may be ...
Portfolio Company Challenges: Resolving Post-Investment Distractions
Nov 01, 2008; ... In today's economy, businesses face a lot of distractions, and knowing how to address those distractions is something not taught at most business schools. These distractions - such as anonymous threatening e-mails, allegations of employee misconduct or plummeting investment values and the ...
UCC MEZZANINE INSURANCE: The Cost-Effective Answer to an Opinion of Borrower's Counsel
Nov 01, 2008; ... The premise of this article is that the use of an opinion of borrower's counsel as to the perfection and priority of the lender's security interest in the pledged equity collateral securing a real-estate mezzanine loan, and as to the "protected purchaser" status of the lender as a "purchaser" of ...
tsl profile: INDUSTRY MEMBERS
Nov 01, 2008; ... While most financial institutions are feeling the brunt of the sluggish economy, First Capital is booming. Find out how their commitment to client service, disciplined credit and learning from history has distinguished First Capital. Mark Sunshine, First Capital's president and chief ...
Ted Kompa: Industry Veteran Ted Kompa Discusses Change, Challenges and CFA
Nov 01, 2008; ... Retiring CFA Chairman Ted Kompa has been in the industry for 42 years. He discussed with TSL the changes he has seen over the years, the challenges now facing the industry and CFA's important role. How did you get your start in assetbased lending? I began my career working for a ...
tsl outlook: ECONOMIC INSIGHT
Nov 01, 2008; ... Way back in April we first put forth the idea that the unfolding credit crunch has finally made its way to Main Street. In recent months, we have witnessed declines in such key economic indicators as retail sales, employment and industrial production. With these signs of recession, the ...
across the pond: THE UK AND IRELAND SCENE
Nov 01, 2008; ... The Secured Lender and the UK's Business Money trade editorial on a regular basis. In this month's column Bob LeFroy, editor of Business Money, discusses the latest news from across the pond. The depressed UK economy, allied to a shortage of liquidity in banks, has created a buoyant ...