March/April 2009
ANNUAL BANKRUPTCY ISSUE:
More Trouble Ahead as CreditMarkets Refuse to Thaw

As DIP Financing Falls by the Wayside, Restructuring Options Still Exist
By Mark L. Claster and Duffield Meyercord, Carl Marks Advisory Group

Chapter 11 bankruptcies are no longer the ready refuge of corporate restructuring. Lately these cases are progressing straight to liquidation, as banks become increasingly reluctant to grant DIP financing, even at rates approaching 20%. Yet, all is not lost. (Ref # BANK024, LOAN003)

ABL Issuance Sees Steep Decline in 2008
By Maria C. Dikeos, Reuters Loan Pricing Corporation

Amid unprecedented tightening of bank credit standards, the strategic use of limited liquidity took on new importance in 2008 and even asset-based
loans struggled to reconcile the return of tighter structures and higher spreads with a dearth of deals and a shrinking pool of investors. Maria
Dikeos returns to wrap up 2008 — the year that wasn’t. (Ref # IND123)

Mitigating the Risk of Loan Portfolio Acquisitions (Part I)
By James D. Prendergast and Jill Sharif, First American Title Insurance Company

Now that the economy is under extreme stress, institutions are disposing of loan portfolios and other financial assets in order to bolster their balance sheets. UCC insurance can be an effective and efficient risk management tool to mitigate the legal and financial risks inherent in such transactions. Part II of this article will appear in our next edition, the annual Factoring issue. (Ref # INS016)

From All Facets

PROFILE OF SUCCESS
Deloitte’s Reorganization Services Leader Proves All Things are Possible
By Stuart Papavassiliou, Senior Editor

In spending time with Deloitte’s national Reorganization Services leader Sheila Smith, one thing becomes very clear … the courage to be out there and visible along with the ability to “not look back” clear the way for personal and professional satisfaction. (Ref # EXEC066)

TURNAROUND CORNER
Avoiding Bankruptcy & Lending Mistakes in 2009
By Jerry Mozian, Tatum

If there was ever a period destined for the history books about the American economy, it’s our current environment. Future generations would do well to avoid the mistakes we’ve made by learning how we overcame them. (Ref # TM091)

FACTORING FOCUS
2009 Factoring Conference Focuses on Critical Topics … Under Florida Skies
By Bert Goldberg, International Factoring Association

The International Factoring Association’s 2009 Conference will be held on April 22–25 at the JW Marriott Grand Lakes Orlando Resort. The event will feature a timely program filled with sessions focusing on critical information needed to guide factors through tricky times. And given the location … there’s time for pleasure and networking as well. (Ref # FAC084)

BANKRUPTCY UPDATE

U.S. Bankruptcy Judge Offers Views on Today’s Climate
As interviewed by Stuart Papavassiliou & Harvey Gross

As news of commercial bankruptcies continues to make headlines on a daily basis, ABF Journal and the New York Institute of Credit joined together to gain Judge Rosemary Gambardella’s unique perspective on these unprecedented times. (Ref # BANK025)

LEGAL EYES
Accessing Funding Sources in a Difficult Lending Environment
By Hans Montag, Baker & McKenzie

While financial institutions are very hesitant to make traditional secured loans, some commercial paper conduits sponsored by the very same institutions have funding capacity for trade receivables securitizations. This development warrants a fresh look at trade receivables securitization as a financing alternative. (Ref # LGL094)