Partner Synergy — A Case Study

Raising Capital/Debt Restructuring
A Biodiesel Manufacturing Company

The Challenge:  The client was faced with a Chapter 11 Bankruptcy filing.  An equity investor was prepared to come in with an $18 million cash infusion, but the client’s total debt load of $38 million was a major deterrent to getting the deal done.

The Solution:  Business Capital was able to assist with an out-of-court restructuring and new equity investment.  Over 80 creditors’ claims were settled to bring the debt level down to just 18% in only seven business days, paving the way for the new equity to come in.  Business Capital was able to objectively and amicably work with the creditors, most of which were among the world’s largest and most prominent companies.  These included law firms, accounting and auditing firms, railroads, maritime shipping companies, software companies, government agencies, vendors, suppliers and leasing companies.  Business Capital’s involvement cleared the deck for new equity to come in quickly and avoid the drawbacks of bankruptcy.”

“Business Capital has assisted us in a number of out of court restructurings and we have been remarkably impressed.  They have been incredibly helpful when numerous creditors are involved who must be dealt with amicably and objectively, especially when  no DIP financing is available. Business Capital’s unique approach to creditors has helped us provide clients with most of the relief associated with a Chapter 11 without having to suffer the drawbacks associated with bankruptcy.”

Bankruptcy Attorney, Brownstein Hyatt Farber Schreck LLP