The vision for ETG Capital, launched in 2009, is to offer innovative solutions for protecting high-risk and distressed accounts receivable.
ETG Capital is the brain-child of two singularly determined bankruptcy attorneys, David Tawil and Steve Azarbad. Mr. Tawil practiced bankruptcy law at Davis Polk, and Skadden Arps. Mr. Azarbad is a former associate at Weil Gotshal and Skadden Arps.
Prior to founding ETG Capital, Tawil and Azarbad were Directors at Credit Suisse. While at Credit Suisse, the talented duo co-founded and co-headed the highly successful Trade Receivable Protection (TRiPs) program, Credit Suisse’s Put Option business, within the Leveraged Finance department of the esteemed investment bank.
Among savvy CFOs, corporate treasurers, and credit risk managers—representing the Fortune 50; wholesalers; and, manufacturers from North America to Asia—the names Tawil and Azarbad are virtually synonymous with high-risk and distressed credit. Both gentlemen are routinely invited to speak at credit industry conferences, worldwide, where they offer their Wall Street perspective on industry giants in distress.
Flexibility and Creativity
ETG Capital’s partners bring over 20 years of bankruptcy law, corporate restructuring, and credit underwriting expertise to every deal. With minimal organizational constraints, ETG has the flexibility to underwrite some of a client’s most difficult accounts. ETG’s sole priority is to provide the most creative and ambitious solutions to client credit challenges.
Capital Resources and Financial Stability
ETG takes a conservative approach to underwriting, emphasizing diversification and substantial capital reserves.
As required by our investors, ETG maintains a minimum capital ratio of the aggregate contingent liability. All reserves are held in cash and ETG is not involved in any other line of business and is not invested in any securities. This puts the firm in very strong stead with respect to liquidity and capital-preservation.
ETG sets aside a capital reserve for every contract sold. The firm maintains sufficient reserves to satisfy 100 percent of expected future payments. Reserves are held by a third-party financial institution to ensure that the funds are available when needed for payment. ETG uses a rigorous methodology to determine its reserving requirements, accounting for expected macro-economic trends, industry movements, individual company performance and outlook, and overall portfolio exposure.
Recently, the world has witnessed the bankruptcy of gargantuan financial institutions, including: CIT, Bears Stearns, Lehman Brothers, and AIG. In our view, large, complicated balance sheets should give you cause for concern, rather than comfort. ETG’s balance sheet is clear—one business line, one class of assets. ETG takes risk using conservative capitalization: CASH.
“Among other things, David was instrumental in helping me manage liquidity in a very tight credit market while the company that I worked for was planning a prepack filing. The products, solutions, and market intelligence he offered were timely and exceptionally appropriate. Thanks David.”
~Treasurer; Tier-1 automotive supplier