Platform Management, owner of COOPER Valves, emphasized the importance of re-authorizing the U.S. Export Import Bank for domestic businesses.
Stafford, TX (May 7, 2015) – The debate regarding the status of the U.S. Export Import Bank continues with Platform Management and its subsidiaries playing a pivotal role. Platform Management recently hosted U.S. Rep. Al Green, D-Houston and Fred Hochberg, President and Chairman of the U.S. Export Import Bank to discuss the risks associated with letting the bank expire. Though the Ex-Im Bank has provided foreign export financing for over 80 years, it is currently set to expire on June 30, 2015. If Congress does not vote for reauthorization, many U.S.-based companies could be at a severe disadvantage on the global stage.
Ionel Nechiti, President of Platform Management, brought his concerns and suggestions to Congressman Green and Mr. Hochberg on Thursday, saying that allowing the Ex-Im Bank to dissolve would endanger long term business plans for many U.S. companies. Nechiti stated that there is a high probability that jobs and manufacturing would move abroad if export financing cannot be secured. For many small businesses, the Ex-Im Bank is their only option, as most commercial banks will not provide export financing against foreign revenue.
After meeting for about an hour, Nechiti and COOPER® Valves President Doug Jones led Congressman Green and Mr. Hochberg on a tour of the facility, including the manufacturing operations. Impressed by what they saw, Green and Hochberg were introduced to the people and the type of company they are seeking to help. The possibility of such an operation being moved overseas was made much more real.
While Green and Hochberg are optimistic that Congress will vote to approve the extension of the bank’s charter well into the future, former Texas Gov. Rick Perry recently reversed his stance on the subject. In a May 5th article for the Wall Street Journal, Perry wrote that “the time has come to end the Export-Import Bank,” though he previously advocated for reauthorization. He even went so far as to acknowledge that the bank helped Texas companies thrive.
The alternative, Perry suggested, is to pair Ex-Im’s expiry with corporate tax reform and roll back the use of export-import banks by other countries to level the playing field. This thinking may prove to be flawed, however, as there is no real incentive for other countries to cut support to their respective export import banks.
Hochberg was in Houston to tour businesses and attend events in what he called “the number one exporting state and the number one exporting city”. In response to Perry’s statement, Hochberg said the concerns Perry cites would not be resolved by letting the bank expire. He instead proposed that Congress grant the bank long term authorization to provide exporters with stability and certainty. Hochberg stated that the job of the bank is to create jobs domestically, while Nechiti added the bank supports U.S. business and enables them to be more competitive internationally.
The meeting was observed by representatives of the Houston Chronicle. To view the article published by the Houston Chronicle regarding the visit and discussion about the U.S. Export Import Bank, please click here.
For more information, please visit the U.S. Export Import Bank website at: http://www.exim.gov. If you have any questions regarding this matter, please feel free to contact Ionel Nechiti (email@example.com).
Platform Management, LLC is a private equity and management/operating company headquartered in Stafford, Texas. Staffed with a wide range of professionals who are experts in their field, Platform Management has positioned itself not only as a financial powerhouse, but a full service management and resource organization. Platform Management is focused on energy and technology related industries and currently owns and operates COOPER® Valves, SAFER® Systems, and Major Incorporated®. For additional information about Platform Management call +1.281.566.5600 or visit www.platformmgmt.com.