Plastic Injection Molder
Revolving Credit Line, Debtor-in-Possession
This Ohio based plastic injection molder was greatly impacted by foreign competition particularly from Chinese imports. As a result, the company was unable to cover their fixed overhead expenses related to three manufacturing facilities. A turnaround consulting firm was engaged, and the decision was made to consolidate the three facilities into one and reorganize the company through a Chapter 11 Bankruptcy.
Lighthouse was approached by the consulting firm and asked to support the reorganization by providing Debtor In Possession or DIP financing. Lighthouse was able to structure a line of credit secured by accounts receivable, inventory, and machinery and equipment that supported the company’s working capital needs while it sought confirmation of its reorganization plan from the court