With retail and commercial customers, the banks prefer direct negotiations in an attempt to achieve an amicable agreement or, if necessary, they settle for receiving only part of the receivables.
NCFE and firms like it agree to take on the receivables of health care providers in exchange for upfront payments on outstanding medical claims.
The defendants had told investors that Wallenbrock would use the proceeds of the notes to purchase receivables of Malaysian latex glove manufacturers for 70%to80%0% of the balance due on the receivables, the SEC said.
Bondholders, determined not to lose control of the receivables, have petitioned an Ohio court to install an independent receiver to take over a National Century subsidiary that manages the cash flow in the bond trusts.
"We provide electron-level transparency," says Nic Perkin, a co-founder of The Receivables Exchange.
That is the message of CFO's 12th annual working capital scorecard, an analysis of the receivables, payables and inventory performance of the 1,000 largest companies in America.
The total purchase price on the credit-card deal will be equal to the size of the receivables on the transaction's closing date, which is expected within 90 days.
Because securitizations are designed to create a very safe claim by separating the risk of the securitized assets from the risk of the originating firms, increases in the risk of the receivables directly inhibit originating firms' ability to securitize assets and indirectly inhibit the originating firms' access to external finance.
"Growth of the receivables portfolio has been tremendous," says Dreher.
Adding to the uncertainty, new federal rules could prohibit the transferring of medical receivables on privacy grounds, an unintended consequence that would bring the securitization of the receivables to a near halt if the rules stand.
