January/February 2018
Feature Article
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Rights Offerings Prove Popular with Both Debtors, Distressed Investors
The past few years have brought a number of large rights offerings in bankruptcies in the energy, healthcare, and retail sectors. Between January 1, 2015, and December 1, 2017, more than $5.5 billion was raised through rights offerings or private placements in more than two dozen large bankruptcy cases. In 2017 alone, seven companies raised […]
More from this Issue
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Evolution in the Face of Disruption
As professionals in the turnaround industry, each of us faces disruption on a daily basis, either with our clients or with our own businesses. Change is constant, and responding to disruption, whether proactively or reactively, is woven into our fabric. When I became a member of TMA in 2001, I joined for two reasons: to […] -
Newcomers: January/February 2018
Arizona Matt Johnson, Ritchie Bros. Auctioneers Molly Kjartanson, Quarles & Brady LLP Hannah R. Torres Atlanta Filmon M. Sexton IV, King & Spalding LLP Australia Ian Renwood, Azurium California – Northern Kenneth Chan, Macquarie Group Noah Schottenstein, Baker Botts LLP California – Southern Matt Beck, Phoenix Investment Funds Jan Ibey, Crestmark Bank Michael McSweeney, TriVista […] -
Milestones
Andrew Blaesing, Matt Dossey, Peter (Che) Carrasquillo, and Catherine Kendall have joined Aurora Management Partners LLC in Charlotte, North Carolina. Blaesing and Dossey are associate directors, Carrasquillo is a senior consultant, and Kendall is marketing and administrative manager. Blaesing, who previously was an audit manager for Deloitte & Touche LLP, holds a master’s degree from […] -
2017 TMA Awards
TMA honors excellence through its annual awards program, which recognizes achievements in the categories listed below, plus more. The following awards were presented at The 2017 TMA Annual in Fort Worth, Texas, on Monday, October 23. TMA INDIVIDUAL AWARDS Jonathan Reimche, TMA Global Awards Committee Chairman, stated, “The committee was very pleased with the quality […] -
Fast Track: Patrick J. Gros
Patrick J. Gros, CPA, is president of the eponymously named accounting firm that he and his wife Kimberly founded in 2001 in Covington, Louisiana. The firm provides outsourced accounting services, bankruptcy reporting, tax consulting and preparation, and compilation/review services, and specializes in the restaurant, hospitality, construction, professional services, and healthcare industries. Before founding the firm, […] -
Canada’s Supreme Court Narrows Banks’ Legal Defense to Check Fraud
The Supreme Court of Canada recently found two banks liable in conversion for a $5.5 million check fraud carried out by a former employee of a major pharmaceutical company. The decision stands as the court’s most recent consideration of the “fictitious or non-existent” payee defense to the tort of conversion under the Bills of Exchange […] -
Downside Distressed Investing: A Lender’s Perspective
Corporate distress is rarely a surprise to participants in the capital structure, and it usually rears its ugly head over a series of unfortunate events. Customer losses, an unfavorable shift in industry dynamics, delayed G&A cuts, covenant breaches, and dwindling liquidity are just a small subset of the many adverse outcomes that can lead a […] -
Surviving Retail Distress: How Some Retailers Proved ‘Exceptions to the Rule’
In the robust financing environment of 2017, commercial bankruptcies leveled off from credit-crisis highs. Through the first three quarters of 2017, commercial bankruptcies totaled 17,371, a significant decline from the 2009 peak year, when 45,510 commercial bankruptcies were filed in the first three quarters of the year.1 As commodity markets have risen significantly from January […] -
Key Valuation Issues in Distressed Investing
The distressed investor considers investing in securities of companies that are either in bankruptcy or are approaching bankruptcy. Typically, these companies have outstanding claims greater than the value of the assets and are experiencing difficulty in servicing their debt. There is a real possibility that the company will be liquidated or will be reorganized as […] -
Rights Offerings Prove Popular with Both Debtors, Distressed Investors
The past few years have brought a number of large rights offerings in bankruptcies in the energy, healthcare, and retail sectors. Between January 1, 2015, and December 1, 2017, more than $5.5 billion was raised through rights offerings or private placements in more than two dozen large bankruptcy cases. In 2017 alone, seven companies raised […] -
Insights into Distressed Investing
Distressed investing has been strong since the collapse of the financial markets in 2008, but as the economy has continued to expand, it has become increasingly opportunistic. It appears that the U.S. economy, which is heading into its ninth year of expansion, will continue to expand, with low interest and inflation rates, consumer spending growing […]