Chapter 11 New Exit Financing

The Challenge:

A manufacturing company needed the placement of exit financing and restructuring pursuant to a Chapter 11 Plan of Reorganization in the U.S. Bankruptcy Court for the Southern District of Texas.

Statesman’s Value Add:

  • Co-advisor to the Company, along with SSG
  • Capital sourcing through strategic relationships
  • Co-negotiated structure and terms of the ultimate agreement
  • Assisted in due diligence and closing

The Solution:

Voluntary Chapter 11 with exit financing.

The Impact:

The Company attained new financing sufficient to fully resolve the litigation, refinance existing debt, and pay all unsecured creditors. The Company was able to avoid a liquidation or sale of its assets at depressed values and achieve a true Chapter 11 reorganization with new exit financing.

“Statesman and SSG’s ability to solicit interest from several lenders in an efficient and timely process enabled [us] to maximize value, preserve jobs, maintain the loyalty of vendors and customers, and exit bankruptcy in five months.”

Chapter 11 New Exit Financing
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