2005 September Issue

In Heavyweight Showdown, IRS “Takes On” Business Air
By Edward H. Kammerer, Esq., Partner, Edwards & Angell, LLP
For several years, the Internal Revenue Service and the business aviation community have been locked in a battle over "entertainment, amusement or recreational" use of business aircraft reminiscent of the great championship fights of the last century. The Service has delivered a potent "one-two punch" to business aviation in hopes of knocking out what they perceived to be the abusive use of business jets for personal use. (Ref #AIR039)

Bizjets Triumphant, Suddenly
By Richard L. Aboulafia
The following is an excerpt from the Teal Group's 15th Annual Business Jet Overview. As a result of several positive trends, Richard Aboulafia believes the business jet market has arrived at a new level. (Ref #AIR040)

Summary Judgment: An Increasingly Effective Litigation Strategy For Lessors
By Howard M. Jaslow and Scott K. Levine, Partners, Platzer,
Swergold, Arlin, Levine, Goldberg & Jaslow
One of the most effective litigation tools available to expedite the receipt of a judicial determination and avoid the cost of protracted discovery and trial is the use of the motion for summary judgment - a procedural device intended to provide judgment on an accelerated basis where the controlling documentation is straightforward and unambiguous and there are no issues of fact requiring a trial. (Ref #LGL1052)

The 12 Secrets of Commercial Credit Scoring:
Confessions of a Closet Quant Jock (Part III)
By Thomas E. Ware, SVP, PayNet
Today's truck finance environment is without question ripe with opportunity. But how long will it last? Many predict it will remain strong until the 2007 EPA emission mandate takes effect, but other issues on the horizon such as rising fuel costs and new regulations could impact the transportation industry significantly. (Ref #CRD074)

Truck Finance - Ripe With Opportunities... But For How Long?
By Timothy A. Pratt, SVP, Wells Fargo Equipment Finance, Commercial Vehicle Group
Today's truck finance environment is without question ripe with opportunity. But how long will it last? Many predict it will remain strong until the 2007 EPA emission mandate takes effect, but other issues on the horizon such as rising fuel costs and new regulations could impact the transportation industry significantly. (Ref #TRU011)

Exceeding Stakeholders' Expectations -
Like-Minded Entrepreneurs Linked by a Common Bond
An Interview With John R. Grainger, President of
National Truck Leasing System and NationaLease
In 1944 when WWII was winding down and strong regional trucking companies were beginning to emerge, a small group decided to band together to increase their buying power and provide reciprocal services. Today, NationaLease is a $2.4 billion franchiser of truck leasing companies with a fleet of 80,000 vehicles served by more than 550 locations across North America. (Ref #ASC006)

Building on Record Gains... Trucking Industry "Buckles Up" for Speedbumps Ahead
By Christopher Moraff, Associate Editor, Monitor
As sales of heavy-duty trucks continue to climb despite growing concerns over fuel prices, a severe driver shortage along with the rapid approach of the new 2007 emissions regulations, the Monitor took time out to check in with the experts to get a handle on the economics behind an apparent industry paradox. (Ref #TRU13)

Of Paramount Importance… Testing the Strength of Your Portfolio
By Shari L. Lipski, Principal, ECS Financial Services
So how strong is your portfolio? Only as strong as you make it. Without asking and answering a few simple questions for your company, you are likely without the information you need to build a stronger portfolio -- and a more successful leasing company. (Ref #EQM135)

Turnaround of an Equipment Rental Company:
Decisive, Strategic Action Charts Course for Future Success
By Duff Meyercord and Doug Booth, Partners, Carl Marks Advisory Group LLC
National Equipment Services, a leader in the nation's $25 billion equipment rental industry, provides specialty and general equipment to industrial and construction end users. Following a disciplined and focused strategic turnaround, today NES is well positioned for future success. However, obstacles the company faced along the way reinforce lessons in early warning signs that are important to all companies and their stakeholders. (Ref #TUR004)

At the Center of the Action... Financing for an Economy in Motion
By Stephen Ellis, Freelance Writer
The U.S. material handling equipment market ended a period of contraction in late 2002 and has been in an accelerating growth curve ever since. According to industry experts, this trend could continue through 2010 or longer. (Ref #HEL008)

U.S. Material Handling and Logistics... Highly Integrated Systems Creating the Flow
By John B. Nofsinger, CEO, Material Handling Industry of America
Traditionally thought of in the U.S. on one hand as mechanical handling and on the other as transportation, the material handling and logistics industry has evolved into a highly integrated collection of equipments, systems and enabling information technologies. (Ref #HEL009)

Forklift Remarketing in Today's Environment
By Andrew Decker, President, Decker Forklifts
The current market is strong in all product sectors of the forklift industry. Orderly liquidation or wholesale values of internal combustion types, for example, are up significantly from three or four years ago. When offered with less than 10,000 hours, these types are bringing as much as 30% of original cost assuming a four-year lease. (Ref #HEL010)

Helping Construction Clients Succeed - In Good Times And Bad
By Ron Riecks, EVP & Group Head, CIT Construction
These days, contractors are finding bigger and better opportunities almost everywhere they look - good news for those associated with the construction industry. While no one can accurately forecast the height of the current peak in the construction cycle or how long this particular robust period will last, CIT's Ron Riecks predicts that the most successful construction equipment lenders will be those who understand the cyclical nature of the business and have the commitment to help their customers succeed. (Ref #HEL011)

Still Cautiously Optimistic...
Construction Equipment Dealers Enjoying the Boom While it Lasts
By Kara A. McDonald, Assistant Editor, Monitor
It's been a banner year for the construction equipment industry and despite the unknowns that 2006 may bring, most finance professionals say they are enjoying the upswing in business while it lasts. Recently, the Monitor had the opportunity to discuss the current environment for construction equipment dealers and their views on what the future may hold. (Ref #HEL012)

Determining Future Value... An Alternative Methodology
By Gunnar Lucko, PhD, Asst. Professor of Civil Engineering, Catholic University
Auctions are an ideal source of equipment sales data as their transactions are established competitively in an open market environment. By taking auction data and linking them with the economic situation under which they occurred, lenders and lessors of construction equipment should be able to extract a model for the market value. (Ref #HEL013)

COLUMNS

LEGAL WATCH
What’s in a Name —
Sixth Circuit Ruling Raises Red Flag to Secured Creditors & Their Counsel
By Lesley Anne Hawes, Partner, Frandzel Robins Bloom & Csato, LCC
In a recent case before the Sixth Circuit, In re Spearing Tool and Manufacturing, the Court held the Internal Revenue Service to different debtor identification standards at the expense of the secured creditor. The ruling should serve as a red flag warning to secured lenders' and their counsel. (Ref #LGL1053)

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