Otterbourg Comments on International Asset-Based Lending Market

August 10, 2010

David Morse, partner at Otterbourg, was quoted in the July/August 2010 issue of The Secured Lender in an article titled "Back in the Game:  Executives See a Turnaround for Cross-Border ABL" focusing on developments in the market for multi-jurisdictional financing using asset based lending. 

Mr. Morse noted, "During the crisis, lenders became very selective and unwilling to consider financings that would involve the extra complexity that inevitably comes with the proper structuring of a multi-jurisdictional asset-based facility," explained Mr. Morse.  "As a result, very few such facilities were done during 2008 and the early half of 2009. However, as markets have bounced back and lenders have resumed deploying capital, new transactions involving cross-border elements have inevitably come back.  The reality of the globalization of American business is necessarily a part of the landscape of asset-based lending.  So, with a return to 'normalcy' since the beginning of 2010, the willingness of asset-based lenders to look to address the financing needs of the operations of U.S. companies across the world have resurfaced with some enthusiasm.  Lenders are once again looking at ways to address incorporating assets located outside of the U.S.--whether owned by separate operating subsidiaries or receivables owing from non-U.S. customers to a U.S. borrower--into their financing."

The full article may be found here.