A company in the lighting distribution business servicing residential and commercial customers had been experiencing losses from reduced sales. These losses had caused their bank to increase their interest rate and reduce the amount of their line of credit. The company had unpaid payroll tax problems and unsecured creditor pressures. The bank was going to initiate foreclosure proceedings unless the owners took immediate corrective action.
Our Swift Action and Results
The Crisis - Lighting Distribution Co.
| • | Stopped the bank from foreclosing without the use of bankruptcy |
| • | Negotiated a new seven year amortization on the term loan at a substantially reduced interest rate |
| • | Negotiated a new line of credit for the company's working capital needs |
| • | Reduced the company's tax liabilities and unsecured debt allowing the company to once again generate a positive cash flow |
            |