Textured Yarn Manufacturer – VA

EXIT FINANCING

This company suffered as a result of the decline in the domestic textile industry. As a result of several years of losses, the company’s existing lender eliminated the inventory portion of their borrowing base creating additional cash flow strains. The company was forced to file for Chapter 11 Bankruptcy protection. Working with seasoned turnaround professionals, the company was able to reorganize and sought confirmation from the court to exit bankruptcy.

Lighthouse was approached by the counsel of the company and asked to support the exit by providing a line of credit. Based on the turnaround and restructuring completed by management and the consultants, Lighthouse was able to structure a line of credit that completely paid out the existing lender and created additional working capital availability.