Debtor In Possession (DIP) Financing2023-01-05T19:14:11+00:00

Turnaround and Debtor-in-Possession (DIP)

Timing is critical when a company is in distress or underperforming. Turnaround financing is used by under-performing businesses that are not achieving their full potential. DIP Financing is provided to companies who have filed for bankruptcy protection and reorganization under Chapter 11 of the U.S. Bankruptcy Code for post-petition needs. The principals at Prestige Capital have extensive experience working with companies operating while in bankruptcy.

NOVELTY PRODUCT MANUFACTURER

$ 2,250,000| Factoring | Massachusetts

Client:

Massachusetts-based Novelty Product Manufacturer.

Situation:

11-year-old company was being liquidated by its existing lender.

Need:

One of the company’s existing owners was seeking to acquire and re-start a profitable division of the company.

Solution:

Prestige provided financing to fund the acquisition of certain property of the liquidating estate from the lender and support future growth.

MANUFACTURER OF SPECIALTY VEHICLES

$ 500,000| Factoring | New Jersey

Client:

New Jersey-based manufacturer of specialty vehicles.

Situation:

The client was purchasing a fabricator of specialty vehicles from an Assignee for the Benefit of Creditors.

Need:

The acquisition process in an ABC matter can be complex due to the divergent interests of different stakeholder groups and the legal processes required to implement a transaction. The client needed a lender who had extensive situational experience and a track record of providing financing to companies in similar positions.

Solution:

Prestige provided a $500,000 factoring line of credit to support the acquisition. Prestige has long history of success in providing financing to companies in financial distress and helping clients navigate through the process quickly and efficiently.
Novelty Product Manufacturer.

CONSUMER PRODUCTS COMPANY

$ 1,350,000| Factoring | Midwest

Client:

Midwest consumer products company with $20 million in annual sales.

Situation:

The fifteen-year-old company’s lender was unable to provide a scheduled seasonal over advance due to issues with its own bank. The client was at risk of losing $5 million in sales.

Need:

The client was seeking immediate funding to fulfill its orders.

Solution:

Within seven business days, Prestige was able to negotiate an intercreditor agreement (carve out) with the bank to provide the client with the liquidity needed to meet its seasonal demands.

NOVELTY PRODUCT MANUFACTURER

$ 2,250,000| Factoring | Massachusetts

Client:

Massachusetts-based Novelty Product Manufacturer

Situation:

11-year-old company was being liquidated by its existing lender.

Need:

One of the company’s existing owners was seeking to acquire and re-start a profitable division of the company.

Solution:

Prestige provided financing to fund the acquisition of certain property of the liquidating estate from the lender and support future growth.

MANUFACTURER OF SPECIALTY VEHICLES

$ 500,000| Factoring | New Jersey

Client:

New Jersey-based manufacturer of specialty vehicles.

Situation:

The client was purchasing a fabricator of specialty vehicles from an Assignee for the Benefit of Creditors.

Need:

The acquisition process in an ABC matter can be complex due to the divergent interests of different stakeholder groups and the legal processes required to implement a transaction. The client needed a lender who had extensive situational experience and a track record of providing financing to companies in similar positions.

Solution:

Prestige provided a $500,000 factoring line of credit to support the acquisition. Prestige has long history of success in providing financing to companies in financial distress and helping clients navigate through the process quickly and efficiently.
Novelty Product Manufacturer.

CONSUMER PRODUCTS COMPANY

$ 1,350,000| Factoring | Midwest

Client:

Midwest consumer products company with $20 million in annual sales

Situation:

The fifteen-year-old company’s lender was unable to provide a scheduled seasonal over advance due to issues with its own bank. The client was at risk of losing $5 million in sales.

Need:

he client was seeking immediate funding to fulfill its orders.

Solution:

Within seven business days, Prestige was able to negotiate an intercreditor agreement (carve out) with the bank to provide the client with the liquidity needed to meet its seasonal demands.

CONSUMER PRODUCT COMPANY

$ 12,000,000| Consumer Products| New York

Client:

Situation:

This 30 year old company needed to pay off their bank due to a breach of financial covenants.

Need:

Client needed to move quickly to pay off their bank line before year end. Their bank line included both accounts receivable and inventory.

Solution:

Prestige brought in an inventory lender to partner with, enabling a combined facility to have sufficient cash to pay off the bank. Within two weeks, the financing was provided to pay off the bank within their expected payoff date allowing the company to continue with their turnaround plan.

MANUFACTURER OF SPECIALTY VEHICLES

$ 500,000|Income Financing |New Jersey

  • Client: New Jersey-based manufacturer of specialty vehicles.
  • Situation: The client was purchasing a fabricator of specialty vehicles from an Assignee for the Benefit of Creditors.
  • Need: The acquisition process in an ABC matter can be complex due to the divergent interests of different stakeholder groups and the legal processes required to implement a transaction. The client needed a lender who had extensive situational experience and a track record of providing financing to companies in similar positions.
  • Solution: Prestige provided a $500,000 factoring line of credit to support the acquisition. Prestige has long history of success in providing financing to companies in financial distress and helping clients navigate through the process quickly and efficiently.
    Novelty Product Manufacturer

SCHOOL BUS COMPANY

$ 6,000,000|Income Financing |New York

  • Client: New York City school bus company
  • Situation: This 25 year old company needed to pay off a bank line due to losses.
  • Need: Client needed to move quickly as school season was about to begin.
  • Solution: In 8 business days, Prestige provided a $6 million dollar line to pay off their bank enabling them to seamlessly execute under their contracts.
Go to Top