Rescue Financing


Companies experiencing liquidity shortfalls, temporary operational problems, pending debt maturities or over-leveraged balance sheets often have viable businesses but still face imminent failure due to an inability to access alternative sources of financing. Such firms typically don't qualify for bank loans and avoid 'Loan-to-Own' hedge fund lenders.

Corsair has a proven track record of working with troubled companies on a friendly basis to develop a mutually beneficial restructuring plan. The plan can provide substantial benefits to both the company and its owners as well as to Corsair and its investors.


BENEFITS TO COMPANY

  • Reduced Debt Service. By restructuring the debt into a multi-year amortizing term loan, near-term debt servicing requirements are lowered and liquidity is improved.
  • New Capital. Funds may be advanced both to refinance existing debt and to rebuild working capital, purchase critical equipment or accelerate company growth.
  • Improved Operations. Alleviating financial pressures allows company to focus on correcting operational, financial or personnel deficiencies and speeds return to prosperity.
  • Other Activities. Corsair can provide exit financing as part of a Chapter 11 Plan of Reorganization, acquisition financing to purchase assets in bankruptcy auctions (Section 363), and DIP financing.



BENEFITS TO CORSAIR

  • Enhanced Returns. Supporting a company's return to profitability and growth creates substantial value for company owners as well as Corsair investors.
  • Reduced Risk. Working closely with company management and professional advisors enhances due diligence efforts and reduces investment risk.
  • Improved Deal Sourcing. Long track record of financing distressed companies makes Corsair highly sought after by troubled businesses and their advisors and increases deal referrals.