Distressed capital is a reasonable, prudent from of debt financing and/or equity investment based largely on the liquidation value of accounts receivable, inventory and fixed assets rather than cash flow and profitability. We have 38 years of experience in this arena. We understand that many distressed situations are not the fault of the management team.
Terms Terms are different than in conventional financing because of the higher risks and shorter duration of the loan or investment. Most distressed capital is intended to be in place for only a few months to a few years. It is not uncommon for distressed lenders and investors to become involved in the operation or oversight of a client until certain milestones are reached in the improvement of its financial situation. After the client's situation has been stabilized, it is normal for the distressed capital to then be taken out when the company is recapitalized with long term, stable funding in order to continue normal operations.
Underwriting Operating history, previous profitability, industry trends and other criteria are carefully analyzed. Financial projections and an analysis of a project’s balance sheet are also critical. Reputable, reliable valuations of all assets is a key component of distressed funding.
Our Focus A large number of distressed situations have recently been created in the energy, mining and real estate sectors. Erratic commodity prices and a slowing economy are creating extreme hardships and we work with companies that need to be rejuvenated and resurrected with fresh injections of equity and/or more livable debt facilities.
We work with companies needing to sell assets.
We work with companies wanting to purchase distressed assets.
We work with lenders and investors who want to exit from their current involvement with distressed situations.
Amount Requested: Minimum $10,000,000
Must have a reliable set of books.
Client must be flexible and willing to face the reality of their situation.
Liens / Judgments - Not a deal breaker
Current Defaults - Not a deal breaker
Bankruptcy – Not a deal breaker
Public or Private Companies
Client may be a current lender holding problem loans, an investor or a company needing assistance.
We work with clients on:
Foreclosure Bailout and Bankruptcy Workouts
Injections of Fresh Equity
Private Funded Loans
Removing loans from banks and refinancing that debt elsewhere
United States Only All distressed capital clients must be headquartered and the majority of assets located in the United States.