If restructuring professionals were asked whether the U.S. economy is currently weak or strong, they would likely offer varying answers depending on each professional’s experience. CFOs might answer entirely differently depending on the areas of business in which they operate. To avoid this kind of inherent subjectivity, the Polsinelli/TrollerBk Distress Indices deal strictly with data, and the most recent quarterly results may come as a surprise. 

In Q4 2017, the indices reflected an increase in bankruptcy filings in the general index, as well as in the real estate and healthcare...

Jeff Sands, CTP, of Dorset Partners; Larry Schwoeri of American Industrial Acquisition Corporation (AIAC); Jon Verbeck of Verbeck Associates; and Kristin Wainright of Tobin, Carberry, O’Malley, Riley & Selinger were recognized as winners of the TMA Small Company Turnaround of the Year Award for 2017 for their work with Vermont Aerospace Company. They recently spoke with Cathy Reece of Fennemore Craig PC, a member of the Awards Committee, about how they achieved a successful turnaround of the company.

Reece: Beginning to end, this...

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 Act. 

The decision is important for its conclusion as to which innocent party bears the risk of loss from a fraudulent check cashing scheme in situations in which both the drawer of the check and the collecting bank are victims to the fraud. 

...

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 of nominees for all the categories of this year’s individual awards. The process required deep consideration and robust dialogue from the committee to narrow down and finalize the candidates. We feel the...

At the end of 2014 and into early 2015, the sharp decline in the oil price was daily news. While there has been some recent respite from the price falls that were being recorded, this article explores how the new lower price will impact companies in the sector in the short and medium terms.

From early 2011 until June 2014, oil traded in a very narrow band, with Brent crude prices largely remaining between $100 and $120 per barrel. After breaching the $100 per barrel level for the last time in September 2014, oil fell sharply to around $50 per barrel in January and has largely traded...

Feeeeeeeeees. Fees, fees, fees. Feeeeeeeeees. Fees, fees, fees.
When I feel poor, or underpriced. When I need more, suits and ties. Whenever I want to, I can get from you, more feeeeeeees. Fees, fees, fees.
When you get sued, I’ll raise my price. Before it’s through, you’ll pay me twice. Whenever I want to, I can get from you more feeeeeeeees. Fees, fees, fees.
From “Fees,” a parody sung to the tune of the Everly Brothers’ “All I Have to Do Is Dream” and recorded as part of the “Licensed to Grill” album by the Bar & Grill Singers
...

Beginning in the second half of 2016, the Canadian mining sector started to crawl out of the prolonged downturn that started in 2011, when commodity prices peaked and started a long, slow decline. That decline prompted many in the turnaround and restructuring sector to plan for a lot of work in the sector.

Ultimately, however, a much smaller number of formal restructuring cases than anticipated materialized, along with a much greater move by debtors and their stakeholders to find practical ways to implement turnaround strategies. The outcomes were positive for a large number of...

While the main focus of academic and professional investment research in the risky corporate credit market has typically been on the performance of high-yield bonds, including, importantly, the default and recovery rates of those bonds that default, there is very little similar work on defaulted bonds and loans. This is understandable, as the high-yield bond market is significantly larger and has a 40-year track record, with coverage and data from many sources.1

To address this issue, we have accumulated data on the monthly performance of defaulted bonds and loans,...

By now, it has become cliché to say that mall anchors and in-line specialty stores are in a state of contraction, that the digital sales channel is cannibalizing revenue that formerly went to the brick-and-mortar channel. “Retail restructuring” has almost become an oxymoron. With rare exceptions, every retailer bankruptcy ends in a liquidation sale transaction or series of transactions. However, the impact of such a liquidation on the value and continued viability of a retailer’s brand can vary widely based on the level of analysis and planning performed before product development and...

Many bankruptcy attorneys, financial advisors, and investment bankers who work in the distressed business industry believe that when interest rates increase to more historic levels the industry will enjoy a much-needed resurgence after five years of depressed engagement volume and fees. Clearly the Federal Reserve is in the process of gradually increasing the federal funds rate, a base rate that directly impacts—and to a large degree drives—all lending rates in the U.S.

However, anticipated interest rate increases may not create the significant surge of engagements for distressed...