Representation of Community Bank Using Personal Property as Collateral
Not every borrower has real estate to put up as collateral for a loan, but many have personal property that will provide adequate security to a lender. Personal property comprises just about everything other than real property, including goods, inventory, equipment, accounts, documents and instruments. Stock is also personal property, as are interests in partnerships and limited liability companies. Our firm provides ongoing assistance to a local community banking client in documenting secured transactions, including both the promissory note and the relevant security documents, and in perfecting the security interests to establish the bank’s priority vis-à-vis other creditors of the borrower. And we help levy on the collateral if the loan goes bad.
Leveraged ESOP Acquisition for Dayton Manufacturer
Attorneys at Kegler Brown served as counsel in a complex two-stage transaction involving all of the outstanding stock of a Dayton, Ohio, manufacturing company (“DayCo”). The transactions also involved a $15 million three facility bank loan. The first stage transaction involved a leveraged redemption and recapitalization of DayCo and the second stage involved the leveraged purchase of all the remaining outstanding stock of DayCo by its ESOP.
Creation of Unique Rail and Truck Intermodal Facility
Our firm acted as counsel to the owner of a large industrial park in a series of unique transactions that created one of the first-ever non-railroad-owned intermodal facilities in the country, bringing together a mainline railroad, a national trucking carrier and the owner of the intermodal park. In a further attempt to increase rail traffic to the intermodal facility, our client entered into an agreement with the railroad to help finance the construction of a railroad turn-out 60 miles from the facility, which would allow unit trains that normally move north-south to move east-west to the client’s facility. Both projects involved the negotiation of novel agreements between the parties, as well as the attainment of state grants and low-interest loans to fund the projects. Kegler Brown was integral to the creation of the business strategy, as well as the many transactional documents required to complete the project.