Turnaround and Debtor-in-Possession (DIP) Financing
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.
Manufacturer of Specialty Vehicles
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
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.
Product Repair Company
Client: Long Island-based consumer products repair company with $5 million in annual sales.
Situation: The eleven-year-old company was previously funded by a private investor but needed an immediate capital infusion as it was on the brink of insolvency. The client and its advisors were deciding whether to file for bankruptcy or restructure out of court. The client was introduced to Prestige by its attorney who knew that Prestige has long history of success in providing financing to companies in financial distress.
Need: The client’s preference was to avoid a costly bankruptcy and select a financing partner which could work with the company as it navigated its way back to profitability.
Solution: In less than one week, Prestige funded a $2 million line, reduced the client’s cost of financing, and helped the client avoid filing for bankruptcy.