December 19th, 2006, New York -- As we come to the close of 2006, Platinum Funding Group would like to reflect on a year of growth and success of Platinum Funding Group in many categories. One area of particular success we would like to share with you at this time involves Debtor In Possession (“DIP”) and distressed transactions that Platinum Funding Group completed during this past year.
In 2006 Platinum Funding Group was approached by a number of distressed companies and their consultants looking for financial assistance and working capital to support the restructuring of their respective businesses as part of Chapter 11 proceedings or to avoid Bankruptcy Court. In providing working capital funding and management services to these companies, Platinum Funding Group reinforced its strong reputation among TMA consultants and law firms specializing in bankruptcy proceedings as an efficient and reliable financier of companies in distress.
Here are just a few examples of companies Platinum Funding Group has worked with in this area:
· In March, along with a factoring facility, Platinum Funding Group provided $900,000 to an Indiana-based FEMA-subcontractor to pay off the company’s limited revolving bank line of credit. At the time of funding, the company was in Chapter 11 after being unable to secure financing sources willing to back FEMA-related projects.
· In September, Platinum Funding Group provided an $11.2 million Accounts Receivable financing to a leading construction and electrical contractor company based in Illinois. Additional working capital was secured through Platinum Funding Group’s entry into an inter-creditor agreement with a regional bank. Injection and management of working capital by Platinum Funding Group allowed the company to generate new revenue streams due to its stronger Balance Sheet.
· In November, Platinum Funding Group provided $8 million in funding to a major Michigan-based automotive supply manufacturer that has been in Chapter 11 since May 2006. Part of the financing went to pay off the company’s then-existing line of credit, provided by the local bank. Platinum Funding Group made the funds available immediately on the day that the DIP factoring facility was approved by the Bankruptcy Court.
· Also in November, Platinum Funding Group funded a subcontractor that provided logistical services and equipment rentals to engineering firms serving the city and State of New York. The company needed a cash infusion to help support expected future growth. Platinum Funding Group provided the working capital through the purchase of certain accounts receivable.
With the New Year about to unfold, we would like to express our appreciation for your support, confidence and business in 2006. We wish you a healthy and prosperous 2007.
