Business Capital Completes $3.5MM Restructuring for Technology Firm
Business Capital amicably resolved over $3.5 million in creditor claims from over 75 creditors for a Silicon Valley technology company. The restructuring ultimately saved the company over $2.7 million, paved the way for new equity and saved the company from Chapter 7 liquidation.
Business Capital was introduced to the company, focused on online and Internet auctions for consumer products, by its venture capital sponsors and law firm, whose attorneys had determined the company could not support the administrative costs associated with a Chapter 11 and still continue to operate. Business Capital worked closely and efficiently with each of the company’s creditors, presented the facts and successfully expedited the settlement process. The creditors ranged from government agencies, leasing companies, landlords, service providers and Fortune 500 companies, to vendors and suppliers. By dealing amicably and efficiently with the large number of creditors, the process was fast and cost-effective and saved the client from filing for bankruptcy. With the new restructuring and multi-million-dollar recapitalization completed, the company now operates from a new position of strength, keeping their focus on growth.
“It was a team effort and everyone had to make sacrifices for the successful out-of-court restructuring and re-capitalization of this company,” said Chuck Doyle, managing director of Business Capital. “Through an objective analysis of the company’s capital structure, liabilities, and limited access to capital, our team of professionals was able to understand and amicably articulate the pros on cons of an out-of-court restructuring to all of the creditors involved. The new structure and investment of debt and equity allows the company to move forward on stronger footing and with better communication with their vendors and suppliers.”
Business Capital is a national debt restructuring and commercial finance firm that specializes in creditor workouts and securing financing for small- to middle-market companies that are both intelligently structured and affordable.