Faced with over-advances and stacked MCAs, Sallyport Commercial Finance achieved full recovery through a borrower’s Article 9 restructuring that preserved collateral, stabilized operations and avoided liquidation losses.
Sallyport Commercial Finance was over-advanced on a $1 million factoring line to a Hawaii-based trucking and logistics firm, exceeding collateral by nearly 25%. An additional $200,000 second-position cash-flow loan compounded the unsecured exposure to approximately 50%. The borrower had stacked $800,000 in MCA debt, threatening both operations and a significant collateral shortfall.
Through an Article 9 restructuring, Second Wind was able to shed unsupportable MCA debt, while conveying the going concern assets to a strategic buyer – one of Hawaii’s leading last-mile carriers. Because the operation was preserved in the transaction, the buyer paid a premium above asset value, allowing Sallyport to exit cleanly while being made whole. The result: full recovery for the senior lender and continuity for the state’s largest logistics network.
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