Post-Bankruptcy Financing

Situation
Following a Chapter 11 filing, a New Jersey manufacturer with $1.6 million of debt was in workout with a money center bank. The company was forced to turn down orders because it lacked the working capital to fulfill them. It had approximately $300,000 of receivables on its books, and $1.1 million in equipment.
Success
We negotiated a discounted payoff of $950,000 with the company's bank, saving our client $650,000. In addition, we were able to use an industry contact to finance the equipment to pay off the bank. Finally, by factoring the company's receivables we gave it the working capital needed to fill the orders it had previously turned down.