"TMA Survey: Kicking the Can Down the Road, Still,"

(TMA International Headquarters)

Article covers results of TMA May 2011 Trend Watch survey on credit availability.”

"There is little incentive for financial institutions to be tough on companies that continue to underperform. The regulators have backed off if the bank is deemed sound and they have ample liquidity -- and bonuses are still based on deals closed, including refinancings"

James B. Shein, Ph.D., Northwestern University’s Kellogg School of Management (Chicago/Midwest Chapter)

“With interest rates at such historically low levels, companies can extend maturities and only have to deal with the annual interest coverage. If the economy does not improve or the company does not restructure its operations to become profitable ... what will happen then?” 

William K. Lenhart, CTP, BDO Consulting (New York City Chapter)

“The markets for bankruptcy financing remain very tight and debtor companies are entering bankruptcy with unique capital structures after attempting to squeeze every drop of value from assets prior to filing. DIPs are smaller and more creative, and tend to be driven by people who are going to take over the company."

Mark Indelicato, partner with Hahn & Hessen LLP, quoted as TMA president