Daily News: April 2, 2012

Business Capital Completes Wind Down for Children’s Gym Chain


Business Capital has amicably resolved over $1.25 million in creditor claims for a well-known national franchisee of children’s gyms.

The client, a franchisee of a well-known experiential learning and child physical development center, had a heavy debt load and could not longer meet its financial obligations. A declining economy created a significant decrease in customer base and a steady increase of cash shortfalls. Financial and personal strain caused the close of the company with significant personal liabilities outstanding. The obligations had to be addressed and the company owners were contemplating Chapter 13 bankruptcy as the majority of the debt was personally guaranteed.

The client’s legal counsel determined the company and guarantors would be best suited to attempt an out-of-court restructuring, advised the company of its options and introduced Business Capital as a trusted partner who would be able to get in front of potential litigation and work with each creditor individually until each claim was resolved. Business Capital was able to reduce the debt by over 80% and avoid personal bankruptcy.

“We are delighted to have played our part in this successful wind down,” said Chuck Doyle, managing director of Business Capital. “Through an objective analysis of the company’s capital structure, personal liabilities, and limited access to capital, our team of highly trained 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 allowed our client to service all of their financial obligations, satisfy their creditors and still keep their personal financial status intact.”

Business Capital is a national commercial finance and debt restructuring firm that specializes in business loans for small- to middle-market companies that are both intelligently structured and tailored to meet the financial requirements of each client.