SouthStar Capital funded a $1 million debtor-in-possession (DIP) accounts receivable (A/R) factoring facility for a manufacturing company currently undergoing Chapter 11 reorganization. This deal was referred by an attorney and required an A/R factor to step in.
The court approved DIP super-priority status on accounts receivable, allowing SouthStar Capital to step in with a tailored factoring facility to provide liquidity during the restructuring process. This funding enables the company to continue operations, meet payroll and fulfill customer orders while navigating bankruptcy.
