Padgett Paper

1.0 PROBLEM STATEMENT Francis Libris, vice president of Caslon Trust party of capital of Virginia (Caslon), faces the challenge of proposing a mutually acceptable debt flavour that leave alone minimize Caslon`s addwording risk and likewise maturation Pad commencet root Products Companys (Padgett) value. It is in-chief(postnominal) to none that the Padgett bill is important for the profitability of Caslon but Padgett`s management is non financially oriented. 2.0 SITUATIONAL ANALYSIS 2.0.1 Caslon Trust Company of capital of Virginia Caslon has oer-extended the credit line marches it considers acceptable for Padgett by granting Padgett $8 gazillion credit infra an internal guidance and thereof placing itself in a really risky position. An $8 million loan implies that Caslon is increasing its lending risk since a loan of such magnitude mover that it is difficult and most likely impossible for Padgett to repay the loan within the 5 days established pay choke o ff period by Caslon. This risk is exemplified since the loan granted is not collateralized or type to protective covenants. Caslon`s management wants Francis Libris to structure the loan position in a manner that would alter the loan to be repaid in a shorter period suggested by them. However, such a possibility is not feasible in the current space and a more creative resultant has to be engineered.

2.0.2 Padgett Paper Products Company Most of Padgetts ownership has come to in the quarterly dividend distribution rather than in the management. No genius or small group of customers accounts for a hearty co nstituent of Padgetts gross revenue. However! , many customers do not fool the 2/10 discount offered and often stretch requital to over 30 days. In order to successfully postulate in the market, Padgett has made a number of minor acquisitions until its new-fashioned purchase of Tri-State lozenge Inc which has resulted in the current problematic situation. Padgett has seasonal worker sales due to the nature of its products (Stationery products) and the products have low...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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