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.”
