$5 Million Debt Restructuring
A Silicon Valley electroplating, polishing, anodizing and coloring firm servicing the manufacturing sector in Northern California. The company’s process is used in a multitude of applications including medical products and devices, power solutions, manufacturing services, engineering and technology capabilities.
The metal plating industry suffered setbacks due to the impact of increased environmental regulations related to the by-product of the process. Coupled with the downturn in the economy, the client faced a significant and sudden decline in revenue and mounting debt as a result.
Business Capital resolved over $5 Million in claims from over 100, mostly secured creditors. This out-of-court restructuring allowed the company to avoid bankruptcy and move forward on stronger footing. By dealing amicably and efficiently with the large number of creditors, the debt restructuring process was fast, cost-effective and resulted in aggregate savings of close to $4million. In addition to avoiding bankruptcy, this allowed the company to maintain strong relationships with critical vendors and suppliers and customer continuity.