The decline in Oil & Gas activity resulted in drastic sales declines and the company was no longer able to service its debt. Management was attempting to raise equity; however, the senior lender was not supportive of the time required to raise capital given the uncertainty of success.
Tiger Capital purchased the debt and capital leases. Upon closing, the sponsor provided working capital funding and Tiger’s liquidation group purchased surplus assets from the Company. The borrower and Tiger entered into a new Forbearance Agreement allowing the sponsor time to raise new funds and restructure the balance sheet.