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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.

House Democrats unveiled a massive $3-trillion virus-relief bill Tuesday, combining aid to state and local governments with direct cash payments, expanded unemployment insurance and food stamp spending as well as funds for voting by mail and the U.S. Postal Service.  A vote is likely on Friday.

While the bill is not supported by House Republicans (or expected to become law), it is the opening salvo for the next COVID-19 relief package, which will likely face protracted negotiations between the White House and Congress.

House Democrats prepared the below summaries, which make a number of changes to programs in the CARES Act, including  to the Payroll Protection Program (PPP).  

As with any industry, lending to the business aviation sector comes with its own set of risks. Shelley Svoren of First Republic Bank gives readers the insider’s tips on this industry.

Ares Commercial Finance (“ACF”) announced that Mitch Drucker has joined as a Partner. Mr. Drucker will be a part of the ACF leadership team comprised of Mitch Goldstein, Ryan Cascade, John Nooney and Oleh Szczupak.  He will also sit on the Investment Committee for ACF and be involved in all aspects of the business from origination to portfolio management.

In the beginning of the pandemic, we reported that courts viewed Article 9 sales with a more critical eye.  For example, we previously reported that Justice Masley of the New York Supreme Court, New York County Commercial Division, issued a  decision on June 23, 2020 in D2 Mark LLC v. OREI VI Investments, LLC, holding that a UCC Article 9 sale on thirty-six (36) days’ notice, which required the winning bidder to make a non-refundable deposit of 10% of the purchase price, pay the remaining balance within 24 hours, and precluded the borrower from submitting a bid, was commercially unreasonable because of the dire implications of COVID-19. Article: Lender Stayed From Proceeding With UCC Article 9 Sale

Vince Mancuso brings more than 30 years of experience in commercial finance, offering strategic leadership and deep industry insight to stakeholders and service partners.

This is a new feature providing advice from WISF members to young professionals on a specific topic.

In a letter to Treasury Secretary Steven T. Mnuchin and Federal Reserve Chairman Jerome H. Powell, SFNet CEO Rich Gumbrecht provided recommendations to help facilitate the objectives of the newly introduced Main Street Expanded and New Loan Facilities as set out by the Federal Reserve. Given that many of the potentially eligible borrowers who would benefit from the Programs have existing collateralized debt, SFNet reasoned that it is critical that the Programs specifically address the relationship between existing secured loans and the additional loans provided for in the Programs. The inability to do so would “limit access to this critical source of capital, imperiling jobs and jeopardizing economic recovery”. The benefit of clarifying and amending these protections would “mitigate the current economic hardship being experienced by [Main Street companies] and bolster this critical part of the capital supply chain”. SFNet further positioned that non-depository lenders should be eligible lenders to maximize the benefit of the Programs.

Click here to view the letter.

We tend to believe that most people who go to an interview will automatically take the job if it is offered, but many times that is not the case. It is important to remember that while you are interviewing the candidate, the candidate is also interviewing both you and the company. Just as the company has a checklist of what it is looking for, so does the candidate. Here is a guide to some of the most tried and true ways for an interviewer to ensure a ‘Yes!’ from a candidate after only one interview.

Citizens Financial Group, Inc. [NYSE: CFG] today announced a definitive agreement to purchase the assets of Trinity Capital, a Los Angeles-based advisory firm that delivers a range of financial services to commercial clients. This transaction, which follows several other recent moves by Citizens to add key talent and solutions, further strengthens Citizens’ growing advisory capabilities.