October 2020
Feature Article
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What Lenders Expect from Borrowers Battered by COVID-19 Fallout
The COVID-19 pandemic has created a seismic shock to the economy, slowing and in many cases stopping the gears of commerce. The resulting drop in demand for products and services has been dramatic, with U.S. GDP contracting 33% in the second quarter of 2020. This, in turn, has given rise to an extreme cash crunch […]
More from this Issue
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Measuring Time During the Pandemic
“Clocks slay time… time is dead as long as it is being clicked off by little wheels; only when the clock stops does time come to life” – William Faulkner Though Faulkner wrote these words close to a century ago, their meaning is uncannily prescient during this pandemic. COVID has permeated almost every aspect of […] -
Change Is Hard, But Necessary
Change does not come easily to many of us. It happens all around us all the time, however. Sometimes in small doses. Sometimes out of necessity. Sometimes fast and furiously when we are least prepared for it and are forced to grapple with how to digest and accept it. The pandemic has put change at […] -
An Invaluable Experience
To say that this year has felt like something of a blur is an understatement. Our 2020 lives have a pre-pandemic and post-pandemic line of demarcation. Working remotely while maintaining a vibrant restructuring practice has certainly been a challenge. It has also presented many meaningful experiences, including humorous moments while mastering video meeting technology and […] -
What Lenders Expect from Borrowers Battered by COVID-19 Fallout
The COVID-19 pandemic has created a seismic shock to the economy, slowing and in many cases stopping the gears of commerce. The resulting drop in demand for products and services has been dramatic, with U.S. GDP contracting 33% in the second quarter of 2020. This, in turn, has given rise to an extreme cash crunch […] -
What Middle Market Lenders Need to Know about Subchapter V
Most middle market lenders probably paid little attention when the Small Business Reorganization Act (SBRA)—popularly known as Subchapter V, referring tothe new Subchapter V of Chapter 11 of the Bankruptcy Code—took effect in February 2020. Only businesses with combined secured and unsecured debts of less than about $2.7 million qualified for this new subspecies of Chapter […] -
Remote Bankruptcy Hearings May Be Pandemic’s Silver Lining
The COVID-19 pandemic has wreaked havoc on large portions of the American economy. Small and mid-size businesses have felt the greatest impact, because they generally have less cash flow and access to capital markets that can allow a company to weather a severe business interruption like that caused by this pandemic.1 However, one potential positive […] -
Survivors Assess their Futures Amid Pandemic’s Economic Fallout
The COVID-19 pandemic has created winners and losers, often penalizing and benefiting entire industries on the basis of how their respective operations, products, and services fit into the new business environment. This phenomenon poses a challenge to business leaders sifting through myriad factors in determining the outlook for their industries and the trajectory of their […] -
Getting the Deal Done, Even During a Pandemic
As a result of the COVID-19 pandemic, most people have had to adjust to the new normal of working remotely. Most nonessential offices and businesses began shutting their doors in mid-March. The uncertainty of so many different facets of everyday life being turned upside down was stressful to many, to say the least. While some […] -
CROs Adapt to Limits on On-Site Presence
Can a chief restructuring officer (CRO) continue to be an effective and efficient resource for lenders in this new normal environment? The short answer is “absolutely.” But the longer answer is complicated. Workouts of lenders’ distressed credits aren’t going away, and in fact, they most likely will increase to levels not seen in many of […] -
Real Estate Could Yield Much-Needed Liquidity for Educational Institutions
Early in the pandemic, a think tank responded to the financial crisis facing America’s colleges and universities by recommending the use of a single metric to gauge risk at these institutions—liquidity. The Century Foundation’s basic argument was that schools should be ranked as liquid (having at least six months of liquid assets as of June […] -
A Primer on Transfer Pricing for Restructuring Professionals: Situation Analysis
Transfer pricing can be a useful tool and source of information for turnaround and restructuring professionals. Although the practice of transfer pricing is most closely associated with tax planning and compliance, restructuring professionals stand to benefit from using the wealth of information and data provided in transfer pricing studies. In particular, restructuring professionals typically need […] -
Newcomers: October 2020
Alabama Blake Ragsdale Van Leer III Arizona Charles Conner Hyun Jun Kim, Columbia Business School Todd Stewart Robin A. Thompson, Kairos Strategy Group LLC Atlanta Aaron Browning, FTI Consulting LLP Michael J. Musso, Klynveld Peat Marwick Goerdeler California – Northern Steve K. Lee, CBRE Michael Plesha, Expense Reduction Analysts Stephen Salomon, CB Richard Ellis California – Southern Ronald J. […] -
Milestones
David Balderach and Robert Novak have joined BDO USA’s business restructuring and turnaround services practice. Balderach, an industry veteran serving the lending and restructuring needs of energy and oilfield services businesses for the past 30 years, has joined the firm’s Houston office. Novak brings more than 20 years of experience in crisis management, operations improvement, […]