Why you should revalue your collateral

Why you should revalue your collateral

fracking equipmentAugust 27, 2015 – Section 362(d)(1) of the US Bankruptcy Code provides relief from the automatic stay “for cause including the lack of adequate protection.” Section 361 defines adequate protection as “providing either cash payments, an additional or replacement lien or ‘such other relief as to provide an indubitable equivalent…of interest in such property’.” A secured creditor that is over-secured is often denied a motion to lift the automatic stay based on 362(d).

In our blog The High Cost of Cheap Gas, we reported that this year alone, oil and gas companies have accounted for one third of the corporate-debt defaults worldwide. Companies like SandRidge Energy Inc., and Halcon Resources Corp. have had to issue new secured debt, which will make it difficult for unsecured bondholders to be repaid if the companies are in default. The markets are ripe for some really big defaults from the energy sector, and also those suppliers to the energy industry.

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NAA Conference & Show 2015

NAA Conference & Show 2015

NAA Conference & Show 2015 fun auctionJuly 23, 2015 – As a newcomer to the industry, the 66th International Auctioneers Conference & Show, held in Dallas, Texas was to be my introduction to the world of auctioneers. I’m a marketing guy by nature. I’ve spent the last 15 years working for various financial institutions, primarily in marketing or digital marketing/product related roles. I had no idea that for the last 66 years, the Conference & Show existed.

We had planned to arrive Tuesday, but mother nature decided to thwart those efforts. Our connection through Chicago was canceled and there was no hope of re-routing. That meant no Eddie Deen’s Ranch for me. After another pre-dawn wake up on Wednesday, the planes were on time and I was on my way.

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Intangible Asset Value

Intangible Asset Value

Intangible Asset ValueThe main focus of our practice at Blackbird Asset Services is clearly in the machinery and equipment space selling and valuing (primarily) industrial assets. However, there are often times in this business where intangible assets such as patents, trademarks, licenses and even customer data come into the equation. Many an instance has unfolded where “hidden” value was unlocked by the sale of an intangible asset that almost went unnoticed. In other instances those assets aren’t so hidden.

RadioShack, a stalwart of American electronics retail stores, filed Chapter 11 in February 2015 after a long period of financial distress. Once a bastion of the do-it-yourself radio and electronics era, RadioShack had simply failed to keep up with the trends of the new millennium. Last month a deal was finalized for Standard General to purchase the remaining assets of RadioShack for $26.2 million. This includes the RadioShack name as well as the data for 67 million customers.

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GPS in Construction and Agriculture

GPS in Construction and Agriculture


GPS in Construction and AgricultureJuly 2, 2015 – By now The Global Positioning System (GPS) is a household name. GPS receivers are integrated into everyday devices: cars, phones, watches, even golf balls. Originally developed for military purposes, the United States government created and maintains the system and also makes it freely accessible to anyone with a GPS receiver. With the prevalence of the GPS new applications arose, such as the ability to automate machinery, even to be driverless. 

 

GPS enabled tractors, earth movers, excavators and other equipment are all part of a shift to increase automation. Combining GPS and automation software, operators can monitor multiple machines from a remote location.In a driverless scenario, operators can command machines to perform tasks like accelerating, braking, steering and also have the ability to implement sensors to detect obstacles.

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The High Cost of Cheap Gas

The High Cost of Cheap Gas


oil wellsJune 25, 2015 – In the first half of this decade oil prices remained quite stable.  In contrast, since June of 2014 costs per barrel have fallen more than 50% from their highs.  There are a myriad of reasons for this, but a common theme is that we are in a slowing global economy, which in-turn creates a lower demand.  We also saw OPEC keep production at high levels despite lower demand amidst already high surpluses of crude.  This policy has proven to keep negative pressure on pricing.

 

Now, to the average consumer lower oil prices should be a good thing.  Consumers get cheaper gas, and in theory cheaper goods and services!  Well, the problem is that those goods and services often don’t get any cheaper.  The savings from fuel prices don’t trickle down very far.  For starters, consumer goods are typically distributed by diesel equipment and diesel prices haven’t decreased as much as unleaded gas.  Some consumers might see a boost in household discretionary budgets, but for every action there is always an opposite reaction.

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Hot Dog Auctions

Hot Dog Auctions

New York Hot Dog CartJune 15, 2015 – Auctions play a big role in the age-old industry of hot dog sales in New York City. Every five years, the parks department holds an auction for food cart permits, which earns more than $4.5 million per year, from the collective pushcart bidders. A vendor’s winning bid then becomes a flat “rent-like” fee that they pay annually to the Parks Department for the permit. They are further required to sign five-year contracts and then are expected to increase their flat fee by 5%, annually during that contact period.

 

In 2013’s auction, the highest bid went to the location just outside the Central Park Zoo and was for an astounding $289,000. Central Park itself seems to be prime real-estate for frankfurters, as all 20 of the permits for the area exceed $100,000 each.

 

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Hot Dog Auctions

Hot Dog Auctions

The New York Times reports, “a lot of visitors (are) in need of sustenance. So while vendors are adamant about not divulging details about what they make, most pushcart sites presumably turn a profit or they would not attract such high bids.”   The downside to...

Drone Use Coming to Fruition!

Drone Use Coming to Fruition!

Some of the regulations the FAA will impose on businesses include:   Operators must pass a written proficiency test, register the drone and pay about $200 in fees. Operators will NOT have to obtain a regular pilot’s license or demonstrate their flying...

Lending to the Energy Industry

Lending to the Energy Industry

“The banks intended to sell the loans to investors but have struggled to unload them even after cutting prices, thanks to a nine-month-long plunge that has taken Nymex crude futures to their lowest level since 2009. The losses mark a setback for Wall Street, after...

Cycling is the New Golf?

Cycling is the New Golf?

According to Business Insider, golf “still commands the highest portion of participants with household incomes above $100,000 among popular sports”, its popularity is decreasing and golf course closures have been on the rise over the past eight years. In its article...

Golf Course Closures

Golf Course Closures

According to industry figures the game of golf has lost 5 million players in the past decade. Where business deals were commonly made on golf courses, The New York Times is reporting that they are now made on high-end bicycles. So why is this? Some seem to contribute...

Past Articles

Cycling is the New Golf?

Cycling is the New Golf?

According to Business Insider, golf “still commands the highest portion of participants with household incomes above $100,000 among popular sports”, its popularity is decreasing and golf course closures have been on the rise over the past eight years. In its article...

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Golf Course Closures

Golf Course Closures

According to industry figures the game of golf has lost 5 million players in the past decade. Where business deals were commonly made on golf courses, The New York Times is reporting that they are now made on high-end bicycles. So why is this? Some seem to contribute...

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More Snow?

More Snow?

Starting with “Snowmageddon” in November, 2014 – the storm that forced the postponement of our Marine Steel Painting auction sale – this winter has been long, cold and unrelenting. Yesterday started out a reasonable day to begin our auction set up process. ...

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