Gordian Group acted as financial advisor to Abbey National Bank in connection with its $250 million accounts receivable securitization exposure to LTV, and which resulted in the successful full repayment of Abbey National’s claim at the end of the bankruptcy.
Case Study
LTV Steel
CLIENT: Abbey National
Industries
Metals & MiningBusiness Profiles
Situation
Abbey National was the substantial owner of $250 million of an accounts receivable securitization in the second LTV bankruptcy. At the beginning of the case, the judge stunned the securitization world and converted Abbey National into an involuntary DIP lender by rejecting the concept of the securitization as being "bankruptcy remote", and folding the assets into LTV on about an hour’s notice to Abbey National.
Engagement
Gordian Group worked closely with the Company in developing and modeling various financial outcomes. Despite being placed "Behind the 8-ball" in short notice, we actively negotiated with various constituents to develop a creative solution to ensure full recovery for Abbey National.
Outcome
Gordian Group and special counsel advised Abbey National and effected a complete recovery of its $250 million. We developed a plan to negotiate for certain rights vis-a-vis a parallel inventory securitization that was folded into LTV, and we negotiated for exit triggers that ultimately resulted in Abbey National being paid 100% of its claim at the end of the bankruptcy.