Food And Beverage Company Defaults On Asset Backed Loan

    Corporate Governance Expert

    This case involves a commercial lending transaction between a food and beverage company and a major retail corporation. The food and beverage company sold various products large scale to the retail corporation for 6 years and had a $50 million dollar line of credit. In the final year, the food and beverage company defaulted on the loan and the lender opted to end the relationship. The food and beverage company found a new lender and negotiated an asset-backed line of credit. Several months before the loan was scheduled to close, the food and beverage company’s former comptroller claimed that the loan was based on fraud. The loan eventually failed and the food and beverage company went bankrupt.

    Question(s) For Expert Witness

    • 1. What is your experience representing both lenders and borrowers in high-value asset-backed loans?

    Expert Witness Response E-007721

    I worked in corporate, securities, and credit with a premier law firm prior to entering academia, where my work included advising both lenders and borrowers on a range of financings. This included commercial lending and working with a royalty securitization for a major entertainment company. I am currently a professor in a top business school and a professor at the same university’s law school. I teach and research in the areas of securities, corporate finance, and corporate governance. In particular, I teach courses in both the business and law schools that deal with asset-backed securities. I have written on asset-backed securities I have also been engaged as a consultant on cases involving commercial lending and asset-backed securities.

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