SouthStar Capital funded a $14 million debtor-in-possession (DIP) facility for a national logistics and warehouse-staffing company headquartered in Tennessee. The transaction included the buyout of the company’s existing DIP lender, which had reached its maximum exposure.
The company required immediate access to working capital to sustain payroll, maintain operations and navigate its reorganization process. The financing ensures stability through bankruptcy proceedings and positions the company for renewed growth post-reorganization.
“This transaction underscores SouthStar Capital’s ability to respond quickly and strategically to complex financial situations,” Michael Haddad, president of SouthStar Capital, said. “By stepping in to replace the existing lender, we provided the client with the capital and partnership needed to keep operations moving forward and set the stage for future success.”
