The Detroit Chapter of the TMA continues to focus on providing members with valuable and exciting career enhancement and educational opportunities.
This winter we have several great events planned which will allow our members to reconnect with peers, grow professional networks and learn about the latest industry trends.
In addition, we are committed to promoting and recognizing our members through membership spotlights, speaking opportunities and committee roles in the TMA.
On March 8, at noon we will host a virtual webinar discussing Subchapter V of the Bankruptcy Code: how it differs from “ordinary” chapter 11 bankruptcy cases, key legal developments, and how it has affected small business restructurings since its inception a few years ago. We are pleased to have an outstanding panel with Judge Joel D. Applebaum, Bankruptcy Court for the Eastern District of Michigan; Matthew Brash, Senior Managing Director of Newpoint Advisors, Subchapter V Trustee, Bankruptcy Court for the Northern District of Illinois; Deborah L. Fish, Shareholder Allard & Fish, P.C., Attorney and Subchapter V Trustee, Bankruptcy Court for the Eastern District of Michigan; and Ronald A. Spinner, Partner with Miller, Canfield, Paddock and Stone, P.LC., Bankruptcy and Insolvency Attorney. After revisiting the fundamentals of the new law, the panel will discuss how Subchapter V is working and whether small businesses and creditors are benefiting from the new provisions.
During the evening of March 24, we will host a March Madness event at Top Golf in Auburn Hills. Attendees will be able to enjoy the basketball games on jumbo screens while golfing in climate-controlled hitting bays.
The success of the Detroit Chapter is attributable to a number of people, including our sponsors who help fund our programs and the many people who lead and serve on our programming committee, membership committee, NexGen board and our Diversity, Equity & Inclusion Taskforce.
I also want to congratulate Heather Gardner of DWH and Michael Boudreau of Morris Anderson for their appointment as interim Board Members.
Finally, I want to recognize the contributions and hard work of our other Board members — Laura Eisele, Eric Grozenski, John Klehm, Glenn Kushiner, Katie Montague, Sean Pattison, Ted Sylwestrzak, John Trendell, and Amanda Vintevoghel — all of whom have worked extremely hard to make the Detroit Chapter a great and dynamic organization.
I hope you enjoy this Newsletter and look forward to seeing you at our upcoming events. Thank you for your continued support of our Chapter.
Inaugural TMA Detroit Chapter Awards
Don’t miss the chance to nominate the first EVER Detroit winner of the NextGen of the Year Award, the Lifetime Achievement Award, and/or the Turnaround/Transaction of the Year award! The members chosen with this honor will be celebrated at the Inaugural 2021 Detroit Chapter Awards reception on May 4th. The recipients of the award may be highlighted by local and national media as well as at other TMA events.
Are you curious about the qualifications to achieve this award? If so, click on the links below to read a more detailed description and access the nomination forms.
Submit your entries by February 28, 2022 5:00 p.m. ET.
Show me the money: Liquidity, cash flow, and the cash conversion cycle
By Tim Weed, Sean Pattison
What’s the secret to tapping potential liquidity? The answer can be found in a powerful but underappreciated financial metric, the cash conversion cycle. Here’s how to calculate and optimize yours.
If the COVID-19 pandemic has taught business owners and middle-market managers anything, it’s that liquidity and cash flow matter. While PPP stimulus money provided a much-needed shot in the arm, it was originally conceived as a two-month bridge loan or grant to help companies survive the first round of COVID-19 lockdowns. And, as happens during every recession, company leaders are reminded of the adage that “cash is king.”
Businesses still standing are leaner and meaner. They’ve reduced labor costs, embraced work-from-home strategies, restructured their real estate lease and debt obligations, and implemented other cost reductions — strategies that allowed them to conserve precious cash. And many may still have untapped liquidity generation opportunities. What’s the secret to tapping that potential liquidity? The answer can be found in a less well-understood and under-appreciated financial metric, the cash conversion cycle (CCC).
Michigan Court of Appeals UpholdsTaxpayer Recovery of Excess TaxForeclosure Proceeds, Bars Multi-CountyClass Actions
A new Michigan Court of Appeals ruling could impact the ability of taxpayers to recoverexcess proceeds from the sale of tax foreclosed properties.
In Proctor v Saginaw County, a consolidated appeal of five putative class actionsagainst a large number of counties, the Court of Appeals rejected an effort to allow therecovery of such proceeds as a class action. The Court also held that the MichiganSupreme Court's 2020 decision in
Rafaeli v Oakland County (see our previous alerton that ruling) applied retroactively and that the subsequent legislative fix, 2020 PA256, MCL 211.78t(1), which created various procedural requirements for recoveringexcess proceeds, applied prospectively only. Finally, the Court also held that qualifiedimmunity protected the government officials involved in the foreclosure process, whileholding that under Rafaeli, taxpayers are entitled to recover both the excess proceedsand interest on those proceeds.
Government Support Programs Ending: Brighter Days For ABLs?
By John Klehm
In the early days of the COVID-19 pandemic, the Federal government acted in numerous ways to support the economy broadly and lower-middle-market companies, specifically. These actions were necessary at the time and have done enormous good. That said, a practical reality is that these programs reduced demand for asset-based financings. The end of 2021 brings with it the expiration of some of these actions, which may portend brighter days for the asset-based lending business.
Regarding small and medium-size businesses, COVID-19 governmental actions included granting forgivable and extended term loans, government making certain loan payments for companies, generous tax credits and bank lending risk management relief.
I joined A&M’s restructuring group in March 2020, right at the start of the pandemic. I focus primarily on debtor-side advisory, including things like liquidity management and commercial negotiations with customers and suppliers. Most recently, I’ve been advising underperforming tier I suppliers through sale processes.
I’ve been a member of TMA since September 2017 when I started in this industry. I used it as a way to learn more about bankruptcy and distressed companies, as well as to meet other turnaround and restructuring professionals. I’ve developed amazing professional and personal relationships over the past 4 and a half years and have generated business from those relationships.
I now serve on the TMA Detroit Board as Treasurer. I will also be joining the TMA Global Finance committee this year and am involved with the NOW (Network of Women) committee and planning the Distressed Investing Conference. I am so grateful for TMA and enjoy giving back to the organization that has done so much for me.
Some fun facts about me:
I backpacked around Europe by myself for over 3 months after grad school and have now been to almost 40 countries.
I have a rescue pitbull named Moose who is the light of my life.
I could easily eat pizza three times a week and not get sick of it
Hotel room block now available, click here to book your room.
Member News
Joseph R. Sgroi
We are deeply saddened to learn of the passing of our community member, Joe Sgroi. Joe leaves behind his wife and 2 daughters, ages 7 and 3.
To honor Joe a trust has been established to provide for the education of Joe’s young daughters, Charlotte and Georgia. If you are so inclined, please consider honoring Joe by contributing to the trust.
Checks can be mailed to the following address:
Charlotte and Georgia Sgroi Education Trust
954 Penniman Avenue
Plymouth, MI 48170
Thank You for Your Support
Thank you to everyone who supported our 2021 Holiday Party charity, HELP HOPE LIVE, to support Sharon Kimble.
On April 3, 2021, Sharon was diagnosed with Guillain-Barré (Ghee-yan Bah-ray) Syndrome (GBS). GBS is an inflammatory disorder of the peripheral nerves outside the brain and spinal cord. A fundraising campaign in Sharon’s honor has been established with Help Hope Live to fund uninsured medical expenses associated with Catastrophic Illness.
To learn more about the fundraising campaign or to make a donation click here.
2020-2021
Board of Directors
Marc Swanson
President
Miller Canfield Paddock & Stone
John Trendell
President Elect
Crestmark
Katie Montague
Treasurer
Alvarez & Marsal
Sean Pattison
Immediate Past President
Plante Moran
Mike Boudreau
Morris Anderson
Laura J. Eisele
LJE Law Firm
Heather Gardner
DWH
Eric Grozenski
Northview Capital LLC
John Klehm
Spectrum
Glenn Kushiner
Riveron
Theodore B. Sylwestrzak
Dickinson Wright
Amanda C. Vintevoghel
The Dragich Law Firm
Ex-Officio Members:
Ryan Gross
nextGen Chairperson
Riveron
Deb Kovsky-Apap
NOW Chairperson
Troutman Pepper
COVID Statement
Attendance by all individuals, including TMA Members, Chapter Executives, Administrators, and their respective employees and guests (each of the foregoing, collectively an "Attendee") at any event constitutes their legally binding agreement that:
1. They are attending the chapter sponsored event at their own risk;
2. None of the TMA, TMA Global, the venue, the organizer, any attendees, or any of the preceding's respective employees, officers, or board members (each of the preceding, collectively the "Released Persons") are in any way legally responsible if one or more Attendees contracts COVID-19 or any other communicable disease around the time of the event or as a result of attending the event; and
3. Each Attendee waives and releases each Released Person from any all liability if they contract COVID-19 or any other communicable disease around the time of the event or as a result of attending the event.
TMA Learning Link™
TMA Learning Link™ is where to find content and information on topics important to our community in the turnaround, restructuring, and corporate renewal industry. We are proud to offer this new benefit to TMA members.
Starting your career and looking for opportunities to put yourself out there can be an intimidating process. Finding the right place to start and who to speak with can be a challenging task. The TMA nextGen group is specifically designed to help you ease into the Detroit area market for young or new professionals involved in transactional services, legal, turnaround management, commercial and asset-based lending, private equity, consulting, and other financial services.
The goal of our group is to introduce new members in the turnaround community to similar professionals in social settings along with quality educational events tailored to young professionals. Also TMA offers a discounted membership for new members ages 40 and under.
Interested in getting involved with nextGen Detroit?
