Entrepreneur Growth Capital provided $6.8 million in funding to a New York-based hospitality company.
The company had been operating under Chapter IX of the Bankruptcy Code. Due to the COVID-19 pandemic, it had also been closed according to New York State guidelines and furloughed hundreds of employees. Because it was operating under Chapter IX, the company was also ineligible for the Paycheck Protection Program.
The company approached Entrepreneur Growth Capital for funding to pay off unsecured creditors in full, which could allow it to emerge from bankruptcy and become eligible for the PPP. There was no secured debt, ample collateral and a willingness from both parties. Entrepreneur Growth Capital was approached by the prospect with only a week to diligence, underwrite, document the transaction before the original PPP deadline of June 30. The deal was funded with a day to spare and the company has emerged with all debts paid.
“This is [a] good example of when you have a motivated borrower, strong collateral and a solid team, good deals can get funded quickly, even getting bankruptcy court approval,” Dean Landis, president of Entrepreneur Growth Capital, said.
Originally founded in 1937, Entrepreneur Growth Capital is an independently owned asset-based lender.