Online AuctionTechnology Company

$3.5 Million Restructuring & Financing

The Client

Silicon Valley based technology company focused on online and internet auction for consumer products.

The Situation

The company  was facing insurmountable debt with a large number of creditors and limited access to capital. The attorneys for  the company’s private equity sponsors and law firm had determined that  the company could not support the administrative costs associated with a Chapter 11 and still continue to operate.

The Solution

Business Capital, introduced to the company by its venture capital sponsors and law firm, amicably resolved over $3.5 million in creditor claims saving the company over $2.7 million. The creditors ranged from government agencies, leasing companies, landlords, service providers and Fortune 500 companies, to vendors and suppliers.  This out-of-court restructuring and multimillion dollar recapitalization saved the company from filing for bankruptcy and liquidation and put them in a fortified position of growth.

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