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06-06-2014, 10:17 AM #1
- Join Date
- Apr 2014
- Posts
- 64
Open Bankruptcy
Will anyone consider an open Chapter 11 that is nearing dischage?
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06-06-2014, 10:33 AM #2
- Join Date
- Sep 2012
- Location
- Gainesville Florida
- Posts
- 168
Merchant Cash Group will offer funding for open Bk's but there is a cap on what we will fund.
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06-06-2014, 11:41 AM #3
Chapter 11's are not dismissed nor discharged, they are accepted and closed. Funding a company with an open bankruptcy is not smart.
Anthony Diamond
Underwriter
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06-06-2014, 01:47 PM #4
the danger here is if the administrator on the BK finds out you are giving the merchant money that is legally allocated to the creditors. Both your company and the merchant could get in some legal hot water (there would be some serious "tortuous interference")
Totally not worth the risk
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06-06-2014, 02:15 PM #5
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04-16-2018, 03:38 PM #6
- Join Date
- Feb 2018
- Posts
- 1,349
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06-06-2014, 01:47 PM #7
- Join Date
- Oct 2013
- Location
- New York, NY
- Posts
- 1,203
Yellowstone would look at it depending upon the circumstances surrounding it.
Email meAndrew J. McDonald
Director of ISO Development
Yellowstone Capital LLC
1 Evertrust Plaza
Suite 1401
Jersey city, NJ 07302
PH - 347.464.0785
FX - 646.213.1790
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04-16-2018, 10:11 AM #8
- Join Date
- Oct 2015
- Posts
- 3
Will you still look at a file in Open Bankruptcy?
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06-06-2014, 04:39 PM #9
- Join Date
- Jan 2014
- Posts
- 283
Is there ever any extenuating circumstances? Example- a client filed Ch. 11 due to a divorce which would have given his ex half of the company, where she would have operated it side-by-side with him every day. The Merchant pays every month and has not lost any Vendors or Clients over it. All verifiable. Could someone get funded under those circumstances or something similar?
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06-06-2014, 04:44 PM #10
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06-06-2014, 05:38 PM #11
- Join Date
- Jan 2014
- Posts
- 283
Of course not. What I'm asking is, is there any documentation or way to circumvent that aspect of it? I'm not a Bankruptcy expert, but isn't the creditor, in cases like these the court or his ex-wife? And if there is a specific dollar amount agreed upon that is paid, on time, every month? Do these factors lessen the risk and make it acceptable?
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06-06-2014, 04:43 PM #12
Any funder could fund the merchant anytime. But under the Bankruptcy, the creditors are entitled to funds (which the merchant is stating before the court they do not have). Those "future sales" would be considered revenue due the creditors, not the merchant. You giving a business funds over the court designated creditors?
I wouldn't want to be on the wrong end of that.
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04-16-2018, 11:58 AM #13
- Join Date
- Jun 2014
- Posts
- 541
Typically, if the merchant is in Chapter 11, the BK Court would need to approve any funding of the merchant as a Debtor In Possession financing arrangement. Not sure how you get around the DIP Court required approval-
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04-16-2018, 02:18 PM #14
- Join Date
- Mar 2017
- Posts
- 37
We will factor the merchant if they are a B2B company
Kevin Sampson
Capital Solutions Bancorp
http://capitalsolutionsbancorp.com
ksampson@capitalsolutionsbancorp.com
706-745-8435 Office
561-436-5883 Cell
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