Business Capital Successfully Restructures $1Million of Creditor Claims Out of Court & Secures $1Million Asset Based Line of Credit for a Manufacturer of Plastic Foam Products
The Company is a manufacturer of custom thermoform fabrics and foam, producing a wide variety of thermoformed products including carrying cases, holsters, pouches, pad assemblies, and compartment liners and dividers.
The Company lost its two largest customers without notice when they moved offshore to source their product in China. The result was a combined loss of 80% of their total income while still being forced to carry the expense of facilities for the larger capacity. This led to an overwhelming debt burden and the need for financing to jump start the business.
First, Business Capital successfully worked amicably and efficiently with each of the company’s creditors, to restructure the debt. The settlement process was fast, cost effective and paved the way for the value of new capital to be maximized. Business Capital then secured an asset based loan collateralized by accounts receivable and purchase orders to allow the company to move forward on stronger footing.