The Impact of the Credit Crisis on DIP Financing
A byproduct of the frozen credit markets was the unexpected contraction of available debtor-in-possession financing (DIP financing). Historically, DIP financings have had the lowest default rates among commercial loans, and until the recent market disruption, only two significant DIP loans had defaulted, and only one of those resulting in a sub-par recovery.
Case Briefs
Highlights of the latest insurance cases from around the country.
Is Europe Ready for Class Actions?
Several recent developments suggest that the European Union (EU) and some of its individual Member States are preparing to embrace the idea of collective redress mechanisms for consumer claims. Although an effective European collective redress mechanism has yet to materialize, the process toward crafting one is certainly underway.
Fresh-Start Reporting
Emergence from bankruptcy presents a series of challenges for debtor companies, their creditors and counsel for all interested parties. One of the most significant challenges is financial reporting.
General Growth Properties
To the surprise of many, when General Growth Properties Inc. ("GGP") commenced a Chapter 11 proceeding in April 2009, it caused 166 solvent bankruptcy remote entities that were current on all their indebtedness (the "General Growth SPEs") that each owned a single mall property to also file Chapter 11 petitions.
Responding to Client Calls for Value
Over the past year, market dynamics have aligned, creating an opportunity to transform services provided by law firms in order to better meet or exceed client demands.
Billing and Collections
Opportunities exist in the back office for law firms to reduce administrative expenses, improve cash management, and increase staff performance to optimize and deliver exceptional customer service. Trends suggest that by focusing on the billing and collections function, a firm may find success in achieving these objectives.
What's Your Practice Worth?
Law firms, because of caseload analysis and the project-oriented nature of their work, are notoriously hard to value, even more so than accounting firms and other professional service industries where there is an established schedule of work for at least a 12-month period.
OPEB, COLI and Post-Retiree Needs
At the same time steps are being instituted to curtail COLI, there is an ever-increasing need to fund for employee medical care and post-retirement medical expenses. The use of COLI and the new Health Savings Accounts ("HSA") can provide a robust funding vehicle.
