Our Client’s Challenge
Our client, a community-based lender, was the principal lender to an innovative wood products facility along with multiple government entities. Management was unable to hit targeted growth leaving local vendors as well as the financing entities unpaid. Its options for restructuring involving a potential sale had adverse tax consequences.
Our Solution
The Jordan Ramis solution was commenced with the filing of a complaint to foreclose and establishment of a receiver. The receiver was then able to take over operations and smooth out the cash flow needs. Our client then facilitated the receivership by working with the local economic development arm of the county. The county funding facilitated sustaining the job base essential to the area. No adverse tax consequences were realized, our client recovered substantially all of its prior loan balance, and the community retained a significant employer.
Tags: Business, Bankruptcy and Creditors’ Rights, Financial Services
