Carlson Trust Company of Richmond‚ Virginia has a long-term banking relationship with Padgett Paper Product’s Inc. Historically Padgett has performed more or less seasonal transactions with Carlson Trust‚ smaller short-term loans and tax payments. But‚ as a result of inflation and a recent acquisition of a competitor (Tri-State Tablet Company)‚ Padgett Paper Products‚ Inc’s financial needs have risen to a permanent level rather than being merely seasonal in nature. Management (Libris) at the company’s
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CASE: PADGETT PAPER PRODUCTS COMPANY As result of inflation and the acquisition of its competitor‚ Tri-State Tablet Company in 1996‚ Padgett’s financial needs have been risen to a permanent level rather than being merely seasonal in nature. The Company exceeded its bank credit line of USD 5 million to USD 7.2 million. So Padgett Paper requested their bank‚ the Calson Trust Company for a higher credit limit of USD 8 million. The request was granted under internal guidance line of USD 8 million at
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insurance company-Continue at 90 day terms-Factor receivables-Collateralize assets-Mortgage general purpose building-Independent Canadian Financing-Flat dividends-Payment Terms - accelerate receipt-LIFO / FIFOEvery available option has a positive and a negative aspect to it. Here we will decipher what option gives Padgett Paper Products the best financial structure‚ provides the most flexibility for continued growth‚ and reduces the risk for all parties involved. It is preferred by Padgett Paper Product’s
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BA280.1: Corporate Finance Case #3: Padgett Paper Products Company Almera / Demasu-ay / Libo-on / Olaño / Reboton / Relucio / San Luis ============================================================ Overview Our company‚ Padgett Paper Product (PPP) is a closely held publicly listed paper manufacturing company whose ownership remained with the descendants of the founder and whose majority of family members was inactive in company’s management. Major connection of these family members came
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Padgett Paper Products Case Study Solution This solution is set-up in the order if you were to present this case. Case Solution Outline -Summary -Company -Market -Product -Projections -Options -Current Capital Structure -Proposed Capital Structure -Review Summary Objective: To find a mutually acceptable debt structure that will minimize lender risk while increasing company value. Constraints: 1) realistic cash flow projections‚ 2) Bank safety levels Situation for each Business Group Bank:
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Kimberly Davis Case Study Padgett Paper Products Baker College Abstract This paper will explore Padgett Paper Products current condition‚ and move into the the future condition. We will explore the obstacles that this company needs to investigate‚ and further build on it in order to be successful. Padgett Paper wants to borrow money from current financial institution‚ and we will also look at the alternatives available for this company. The objective is to find an acceptable
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Summary of Case Padgett Paper Product Company Key problems & Key issues Francis Libris‚ Vice-President of Caslon Bank‚ is the “Relationship Manager” for Padgett Paper Company – a long time customer of the bank. Recently‚ Padgett Paper had asked for and received from Caslon Bank a significant increase in the amount of its loan. Libris is reviewing Padgett’s most recent financial forecast and its performance. During the past year Libris has attempted to restructure the loan‚ but Padgett has refused
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Padgett Blank Book Case Problem/Current Situation In early 1988‚ Padgett Blank Book Company had $3.6 million dollars financed at prime on 90-day notes through its sole lending bank‚ Windsor Trust Company. A coveted competitor came on the market and Padgett acted quickly to purchase before it fell to their competitors. Understanding Padgett’s needs and valuing their business Windsor responded to Padgett’s request for an additional $3.6 million to make the acquisition. Given the short notice‚ the
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In the early 1930’s‚ Carl Rehnborg started the first significant line of vitamins in the United States with his "California Vitamin Company" then change the name to Nutrilite Products Company‚ in 1939. So that‚ Nutrilite treaty with a company owned by Lee Mytinger and William Casselberry to become the exclusive American distributor of Nutrilite vitamins‚ in 1945. In addtion‚ Mytinger and Casselberry begin start the first MLM with the same essential rule that underlies the business. Every autonomous
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The Brita Products Company began in 1988 under the recommendation of Charlie Couric‚ a marketing executive with the Clorox Company. Optimistic of its capability to be profitable‚ Clorox acquired the right to market the home water filtration system. Clorox‚ citing the overriding long-term benefits of continuous filter sales‚ initially engaged in deficit spending. Such measures paid off and Clorox not only created a $350 million market‚ but also captured 70% of the market revenue. Brita enjoyed success
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