Business Capital Reduces Residential Stone Provider Debt
Business Capital announced it restructured $2 million 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 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, the company was in financial distress and preparing to initiate bankruptcy proceedings.
Business Capital worked closely and efficiently with each of the company’s creditors, presented the facts and expedited the settlement process. The restructuring reduced the company’s debt by more than 80% and allowed it to pay its creditors and avoid a bankruptcy filing and losing all of its 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,” Chuck Doyle, managing director, Business Capital. “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.”