Arriba Capital (Arriba) successfully closed $1,300,000 loan for a manufacturing company in Latrobe, PA. The loan was priced at Prime + 275 and was broken up into three separate credit facilities, which included; a $200k SBA Cap Line, a $770k 10-year term note, and a $290k 25-year term note. These three credit facilities provided the client with enough capital to pay off the secured creditors and enable the company to successfully emerge from bankruptcy.
Challenge: Due to criminal fraud by the previous owner, the company was forced into Chapter 11 Bankruptcy in 2012. Over the last eighteen months one of the major creditors was trying to force the company into Chapter 7 liquidation versus reorganization. “Due to the disagreement with a major creditor, it was pivotal for the courts to understand the company’s repayment ability and the likelihood of traditional bank financing to help facilitate the successful bankruptcy exit,” said Joel Nathanson of Arriba Capital.
Solution: Arriba Capital was able to identify a small business lender that understood the complexity involved with the bankruptcy proceedings. Working alongside Arriba, the bank was able to recognize the company’s strong financial position and was willing to work with the borrower to provide enough capital to pay off all the secured creditors. The loan was a win / win for all parties involved and ensures the long-term success for this US manufacturing company, which specializes in the development and manufacturing of top-quality ceramic-to-metal and glass-to-metal hermetic seals.