In the Marketplace
October 29, 2009
Highlights of the latest equipment leasing news from around the country.
Vehicle Leasing: Graves Amendment Held Inapplicable to Leased Trailers
October 29, 2009
If you or your clients are in the business of leasing the trailer portions of tractor-trailers take note, a New York County trial court judge has ruled that 49 U.S.C. ' 30106, ("the Graves Amendment"), does not pre-empt actions alleging vicarious liability with respect to "delivery equipment" that does not contain a motor.
Who Moved My FASB?
October 29, 2009
The FASB's Accounting Standard Codification topical system has permanently changed how accountants, lawyers, educators, regulators, and finance professionals will cite and research myriad rules that govern how companies account for and present their financial transactions and financial statements.
Deals At Risk: Textron Opens Door to IRS Discovery of 'Tax Accrual Workpapers'
October 29, 2009
SILOs underlie a confrontation between a taxpayer and the IRS in the new First Circuit case of <i>United States v. Textron Inc.</i> But that decision was not just about the legality or taxing of such leases. Rather, it has grave consequences on a far more sweeping issue: the inability of taxpayers to shield from disclosure so-called "tax accrual workpapers," documents typically prepared by in-house tax attorneys that set out in detail sensitive areas of tax liability.
Movers & Shakers
September 29, 2009
Highlights of the latest equipment leasing news from around the country.
The Impact of the Credit Crisis on DIP Financing
September 29, 2009
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.
The Equipment ABS Market
September 29, 2009
This article: 1) as a matter of background, discusses the basic economics of a TALF loan backed by equipment ABS and provides a general overview of the collateral eligibility requirements of TALF relating to equipment ABS, and 2) discusses the key hurdle (i.e., achieving a AAA rating) prospective issuers have encountered, and will likely continue to encounter in the near term under the existing paradigm, in their attempts to structure and execute equipment ABS in the current market.
The General Growth Properties Bankruptcy and the Future of Securitizations
September 29, 2009
Do the recent rulings in the General Growth Properties bankruptcy spell doom for equipment debt securitizations? Not necessarily so, according to the recent rulings of Southern District of New York Bankruptcy Judge Allan Gropper in the $27 billion General Growth Properties Chapter 11 bankruptcy — at least with respect to the issue of substantive consolidation.
