September 8, 2011 - There seems to be a trend developing with workout bankers to move their credits along a little faster than they had been in the recent past. According to panelists at the Northeast Regional TMA event in Saratoga Springs, NY on September 1, 2011, many workout bankers are compressing their timelines to resolve issues with difficult credits. This is very different from the early days of the recession and the post-Lehman days when workout officers were more inclined to 'amend and extend' or otherwise give their troubled borrowers lots of leeway if they were out of covenant. "With the dismal outlook for our economy, it makes sense to take the charge off and liquidate" said one banker. His thinking is that if they were not able to stabilize the balance sheet or sell the business quickly, it just made sense to move for liquidation rather than risk losing value waiting for an alternative resolution in an uncertain economy.
I guess that means that auction firms should see an increase in bank referred business in the coming quarters. Blackbird specializes in secured creditor work, and welcomes your troubled loans.
Based in Buffalo NY, Blackbird Asset Services is a boutique auction and valuation firm that caters to secured creditors and bankruptcy professionals. With a national practice, our auctioneers and appraisers work all over North America and conduct USPAP certified appraisal reports as well as on site and online auction sales.