A manufacturing company was unable to meet its creditors’ obligations because of a slowdown in product demand. Unsure of the next step but not wanting to close the generations-old business, it reached out to its attorney who recommended Chapter 11 bankruptcy. Knowing the company would need a financer to help facilitate cash flow to continue operations, on behalf of the client the attorney contacted TCI Business Capital for Debtor-in-Possession (DIP) financing. Aware that the manufacturing company’s bank was going to likely take some of the largest losses and that other banks would be unlikely to assist in financing his client, the attorney was glad to know that TCI Business Capital has over 20 years of experience providing DIP financing.
Working with the appointed trustee, TCI Business Capital provided an accounts receivable factoring line to the manufacturing company to manage its cash flow. TCI Business Capital’s experience in working with bankruptcy courts, attorneys and appointed trustees made the process smooth for the manufacturing company. It continued operations during the restructuring process and retained the ability to grow as product demand increased.
Today the manufacturing company has successfully discharged its bankruptcy and maintains steady growth in its business. It salvaged its relationships with vendors and customers and continues to fulfill financial obligations and commitments while experiencing growth. The company maintains its cash flow with its accounts-receivable line provided by TCI Business Capital and is relieved to no longer be in the red.