An oil field services company with annual revenues of $30 million became distressed in today’s rising fuel price environment. Second Wind Consultants facilitated a UCC Artirle 9 reorganization of the company that allowed the company’s lender, Crestmark, to recover full asset valuation of $5.25 million without formal liquidation. In addition, GemCap refinanced Crestmark out of the previously distressed credit on behalf of the new operating entity, taking a first position lien on assets that were resolved of all subordinate liabilities through the Article 9 transaction.
The Article 9 reorganization provided for Crestmark’s clean exit, GemCap’s entry into a performing credit and a relaunch of the business, preserving all jobs and continuity of operations.
