Articles

The new Company Stabilisation and Restructuring Act (StaRUG for short) entered into force on January 1, 2021. It is based on a European directive on the introduction of a pre-insolvency restructuring procedure, which was adopted in June 2019.

The intention is to facilitate early restructuring of companies and in any case before insolvency occurs. The idea is to avoid the disadvantages of insolvency - a possible loss of reputation and high costs for the affected company, disruption to trade and to safeguard employment.

It is an unfortunate reality that, as the economic repercussions of the COVID-19 pandemic continue to be felt, an increasing number of businesses will face financial and operational distress. For many of these businesses, bankruptcy may be an appropriate or necessary path to restructure their balance sheets. However, it is not the only option and lenders must keep that in mind as companies increasingly default under their credit agreements.

Bankruptcy can be an extremely useful tool for restructuring a company, but can also be expensive, lengthy and frustrating. That’s why more lenders are considering a Strict Foreclosure process executed under Article 9 of the Uniform Commercial Code. This strategy can offer many of the same benefits as a bankruptcy filing while requiring less time and fewer financial resources. In order to properly assess the benefits and risks of this approach, lenders must have a firm grasp on what it entails, when best to use it, as well as how to manage people throughout the process.

MidFirst Business Credit, Inc., is pleased to announce the addition of William “Bill” Bogatay as senior vice president, business development officer. Based out of Dallas, Texas, Bill will assist with originating senior secured debt facilities for companies throughout the Southwest, including, Texas, Oklahoma, Louisiana, Arkansas and Kansas.

CIT Group Inc. (NYSE: CIT) today announced that it has hired Calvin Navatto as a business development officer in its Commercial Services business.

Navatto will be based in New York City and focus on business development across a wide range of business verticals supported by Commercial Services, including apparel, footwear, housewares, consumer electronics, health and beauty aids and more.

CIT Group Inc. (NYSE: CIT) today announced that its Power and Energy business served as lead arranger for approximately $185 million in financing for a 66-megawatt portfolio of community solar projects.

The financing was arranged on behalf of Clearway Energy Group, one of the largest developers and operators of clean energy generation facilities in the U.S.

The portfolio consists of 19 separate projects totaling 66 megawatts of solar generation capacity located in Massachusetts, Illinois and New York State.

The Consolidated Appropriations Act, 2021, an omnibus stimulus and budget act that includes the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act), was enacted on December 27, 2020.  The Economic Aid Act amends, extends and expands several key stimulus programs as summarized below.

CIBC Innovation Banking today announced it has extended a $15 million credit facility to Yello, a provider of early talent acquisition and recruiting scheduling software. The credit facility will be used to support Yello's continued growth as it further establishes itself with organizations seeking to hire the best and most diverse talent.

Yello is a Chicago-based portfolio company of JMI Equity and First Analysis. Financing was provided by CIBC Bank USA, CIBC's US banking subsidiary.

SFNet’s Annual Convention was held in Austin from November 9-11.  This article provides an overview of the key topics addressed. 

Listening to Convention keynoter Peter Zeihan’s geopolitical perspectives is a reminder of the many global and economic disruptors possible and all that one can’t control. However, in keeping with the event’s theme of "Mastering Disruption, Putting Capital to Work in the New Global Environment,” the breakout sessions triggered healthy discussion about what a new global environment for lending could look like, how data could be more strategically used to protect cross-border interests or prevent fraud, and how new supply chain models are forming. The factoring and asset-based lending sessions presented ways to master their markets while facing recessionary headwinds.

Besides the many opportunities to network with peers and clients, attendees in Austin, TX, could absorb others’ views on economic conditions affecting the industry and dive into niche topics of strategic importance.

Current headwinds affecting asset-based lending (ABL) portfolios and emerging opportunities and challenges in various industry sectors are on the agenda at the Secured Finance Network (SFNet)  Asset-Based Capital Conference 2020 Feb. 4-5 in Las Vegas.

CIT Group Inc. (NYSE: CIT) today announced that its Technology, Media and Telecommunications business served as co-lead arranger and joint bookrunner for a $165 million financing on behalf of iEnergizer, a leading technology services and media solutions company.

The financing, which includes a $150 million term loan and a $15 million revolving credit facility, will be used to refinance existing debt and fund a dividend to shareholders.

Founded in 2000, iEnergizer provides technology-enabled services to clients across a wide range of industries, including gaming, healthcare, publishing, travel, and financial services.

CIT Group Inc. (NYSE: CIT) today announced that CIT Northbridge Credit, as advised by CIT Asset Management LLC, served as sole lead arranger on a $20 million senior secured credit facility for Laurel Grocery Company LLC.

Headquartered in London, Kentucky, Laurel Grocery is a wholesale distributor of grocery products to more than 160 independent grocers in Georgia, Indiana, Kentucky, Ohio, Tennessee and West Virginia. The company, founded in 1922, also provides a range of business services, including accounting, insurance, merchandising, advertising and third-party warehousing and logistics.

Proceeds will be used to repay debt, finance growth initiatives and support ongoing operations.