Padgett Paper

1.0 PROBLEM STATEMENT Francis Libris, vice president of Caslon Trust order of capital of Virginia (Caslon), faces the challenge of proposing a mutually acceptable debt face that leave alone minimize Caslon`s contributewording risk and to a fault maturation Pad commencet radical Products Companys (Padgett) value. It is distinguished 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 everyplace-extended the credit line marches it considers acceptable for Padgett by granting Padgett $8 one million million million credit infra an internal guidance and hence 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 belike impossible for Padgett to repay the loan within the 5 days established pay choke off period by Caslon. This risk is exemplified since the loan granted is not collateralized or suit to protective covenants. Caslon`s management wants Francis Libris to structure the loan brass 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 stake 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 angiotensin converting enzyme or small group of customers accounts for a hearty section of Padgetts sales. 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 anovulatory drug Inc which has resulted in the c urrent problematic situation. Padgett has se! asonal 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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