Helping Companies Cash Flow
Good companies sometimes have to deal with difficult times. Now, for example, many good companies are facing no choice but to file for bankruptcy.
We can help. With a few important steps, American Prudential Capital, Inc. can help a qualified company obtain working capital during and after filing for Chapter 11 bankruptcy.
- When a work out is possible, the filing attorney can ask the bankruptcy judge to grant American Prudential Capital a Super Priority First Lien in the accounts receivable of the company filing for chapter 11.
- With the Super Priority First Lien, the judge should also grant survivorship of the lien so that the filing company can sell its receivables to American Prudential Capital both during the bankruptcy proceeding period and after the filing company emerges from bankruptcy.
- The filing company will sign the contract with American Prudential “subject to” the bankruptcy judge’s final approval. The contract will be presented to the bankruptcy judge and once approved as an administrative expense in the bankruptcy, the filing company can sell its receivables to American Prudential Capital for immediate working capital.