Business Capital Successfully Restructures $2M of Creditor Claims Out of Court for a High Volume Provider of Quality Granite and Stone Residential Products
The Company, founded in 2002, is a North Carolina based supplier of stone and granite products for the single and multifamily housing market that had been profiting greatly from the rapid growth in the housing market in the downtown Charlotte area and was planning on expanding geographically and introducing new products.
In 2007, the Company was acquired by its current owners at a price and capital structure that reflected this optimistic outlook. The business was hit hard by the economic crisis and the resulting deterioration of the housing and construction industry. A brief partnership with Home Depot was derailed when that branch of the chain was shuttered. When Business Capital was introduced to the client, they were in financial distress and preparing to initiate bankruptcy proceedings.
Business Capital successfully worked closely and efficiently with each of the company’s creditors, presented the facts and expedited the settlement process. By dealing amicably and efficiently with the creditors, the process was fast and cost-effective. The restructuring reduced the company’s debt by over 80% and allowed them to pay their creditors and avoid a bankruptcy filing and losing all of their personal assets.
“It’s especially rewarding to help closely held family businesses. Our client was all in, with a $1.25MM second deed of trust on their personal residence. The loan was also guaranteed by the U.S. Small Business Administration, (SBA) which made the negotiations especially difficult and laborious and our client could not afford the administrative costs associated with a Chapter 11. We implemented our out-of-court restructuring plan which resulted in significant reductions in costs and delays.” – Chuck Doyle, Managing Director, Business Capital