Business Capital Closes Plastic Foam Products Manufacturer ABL
Business Capital announced that it restructured $1 million in creditor claims out of court, and secured a $1 million asset-based credit line for a manufacturer of plastic foam products.
The company lost its two largest customers without notice when the company moved offshore to source its product in China. The result was a combined loss of 80% of its 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.
Business Capital worked 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.
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.