Articles

Attorneys from McMillan LLP discuss the differences between the personal property security regimes between the U.S. and Canada. 

The annual number of bankruptcies peaked at 60,837 in 2009, but the financial and bankruptcy experts expect the level of bankruptcy filings to explode well over that peak during the next twelve to twenty-four months. During the first six months of 2020, there were 3,604 business bankruptcy filings, which is up 26% from the 2,855 filings during the first six months of 2019 (Epiq/Aacer). June year over year chapter 11 bankruptcy filings increased 43% from 2019 to 2020. The June increase is expected to be the start of a wave of business bankruptcy filings as the economic impact of the Covid-19 virus manifests itself in lost businesses.

This anticipated increase in bankruptcy filings means lenders will be challenged to manage an increasing number of borrower relationships during the bankruptcy process, including developing or evaluating various liquidation scenarios.

Lenders will be challenged to anticipate recovery values under different liquidation strategies – ranging from different bankruptcy proceedings, to receiverships, to ABCs, to out of court wind down processes.

Newbridge Global Sourcing (“Newbridge”), a leading capital provider to small and medium-sized businesses with supply chain and purchase order financing needs, announced a $50 million partnership with a Canadian-based originator of receivables. The technology-enabled specialty lender provides receivables financing to companies with strong end-debtors. The partnership expands Newbridge’s scale and diversifies its customer base and sector exposure.

Gordon Brothers, the global advisory, restructuring, and investment firm, announced today the appointment of Kyle Shonak as Managing Director in the Retail division.  In his role as Managing Director, Shonak will have many responsibilities, including managing retail client engagements and working with the team to enhance the group’s retail growth strategy.

SFNet's Asset-Based Capital Conference was held virtually March 9-11 and offered professionals in the asset-based lending, alternative asset management, private debt, private equity, distressed debt and service providers to discuss the rapidly changing economic environment and its impacts on portfolios and business opportunities. With nearly 1300 attendees, the virtual event offered more content to a broader audience than in years’ past.

Many panelists were optimistic that there would be a stronger and quicker than expected recovery in 2021. While the COVID-19 pandemic was unexpected, another playbook has been written and the industry once again showed how to be resilient and adjust to “the new normal.”

“The SFNet ABCC conference did a great job of balancing both education and networking,” said attendee Nancy Kalman, senior business development officer, United Capital Funding. “The distinguished panels were very informative with what our industry looks like today. I met several new people in the networking rooms, along with setting up many individual meetings. I even received a lead from this that looks like we will be able to fund.”

TSL Express’ senior editor sat down with Tim Burniston, senior advisor, Regulatory Strategy for Wolters Kluwer Compliance Solutions to discuss Wolters Kluwer’s Regulatory & Risk Management Indicator survey.  Burniston joined Wolters Kluwer in December 2011 to lead Compliance Solutions’ Risk and Compliance consulting practice. Under his leadership, the practice grew significantly in scope and has built on an international reputation for excellence. In July 2017 he was named senior advisor for regulatory strategy. 

This year’s Regulatory & Risk Management Indicator Survey was conducted between August 4 and September 6, 2021, with 391 responses received. Respondents are primarily from bank management/executive and compliance roles with strong representation from those in lending functions.

Bridge Bank today announced it has extended a credit facility to YES Leasing, a financial services company that provides commercial equipment financing to companies and lessees of all credit backgrounds, specializing in helping those with challenging credit situations and unique circumstances. The Miami-based company, established in 1975, is a funding source for small businesses, entrepreneurs, vendors and equipment brokers throughout the country. The new credit facility will provide additional capacity to support the ongoing growth of YES Leasing's portfolio.

Ares Commercial Finance announced today that it has provided a $30 million senior secured credit facility to Monolith Brands Group, Inc. (“the Company”).  The Company is a consumer products platform focused on acquiring omnichannel brands in niche product categories. Proceeds of the credit facility will be used to refinance existing indebtedness, provide ongoing working capital and help fund future acquisitions.

Encina Business Credit, LLC (“EBC”) announces the completion of a $75.0 million revolving credit facility for Horizon Global Corporation (“Horizon”). The facility will be used to replace an existing facility and will provide for ongoing working capital.

A recent Supreme Court case and related law changes in many states have resulted in significant new state sales tax obligations on many SaaS providers. It’s important to understand that these changes could result in new tax collection responsibilities on your business even in states where you have operated without them in the past.

Executives need to act quickly to make sure that their existing operations are in compliance with the new rules and that their systems can adapt as sales growth and law changes trigger additional obligations.  

From the second quarter Phoenix Management “Lending Climate in America” survey results reveals optimism in the U.S. economy with results for the near-term economy exceeding pre-pandemic predictions for the first time since the country shutdown due to COVID.

Since reaching an 11-year record low in Q2 2020, confidence in the near-term economy (next 6 months) has steadily climbed quarter over quarter to a 2.79 weighted average GPA in Q2 2021. Additionally, lender confidence in the U.S. economy in the long-term increased (by 7 percentage points) to 2.36 from the previous quarter’s results of 2.29.

Mountain Ridge Capital (“Mountain Ridge”) and Great Rock Capital (“Great Rock”), today jointly announced the closing of a senior secured credit facility for HOP Energy, LLC (“HOP”).  Founded in 1995 and headquartered in White Plains, NY, HOP Energy is a market-leading home services provider serving ~90,000 customers across two primary areas:  distribution of home heating oil and the installation and servicing of HVAC systems, heat pumps, and other critical non-discretionary home services.  HOP Energy is majority-owned by Delos Capital.

MUFG Union Bank today announced that Anvar Hodjaev has been named Head of Healthcare for its Commercial Banking division. Based in Los Angeles, he will lead the bank's Healthcare industry team and report to Adam Feit, Managing Director and Head of Financial Sponsors, Healthcare, and Life Sciences.

"Anvar brings a wealth of experience and expertise to a crucial business for MUFG Union Bank," Feit said. "As half of our lending commitments come from industry specialties, we continue to lean into our ability to leverage the combination of both local coverage and specialized industry expertise in critical individual sectors for our clients."

First Eagle Alternative Credit, LLC (“First Eagle” or the “firm” ) today announced that it has added asset-based lending solutions to its direct lending platform and appointed industry veterans Larry Klaff and Lisa Galeota to lead this initiative at the firm.

Klaff and Galeota join First Eagle from Gordon Brothers Finance Company, a majority-owned portfolio company of BlackRock Capital Investment Corporation, where they worked together and at its predecessor firm for over 13 years. During that time they sourced, originated and structured asset-based facilities valued at over $1 billion across a wide variety of industries. They will be based at First Eagle’s Boston office and will report directly to Chris Flynn, President of First Eagle Alternative Credit.