Flexible Funding was a receivables factoring and asset based lending business, focused on providing funding for companies in the staffing and transportation industries.
Candlewood had been working with Flexible on a variety of potential capital solutions, when the Company began experiencing challenges that strained its senior lender relationship. Candlewood worked with Flexible management and legal advisors to determine an appropriate strategy to deal with those issues, and as a result of those discussions, the Company filed for bankruptcy protection. While in bankruptcy, Candlewood assisted the company with preparation of its operating budget and other analyses, and also began quickly running an extensive marketing process to sell the assets of the business, with the goal of repaying the company’s lenders and creating the highest possible value for all stakeholders. In less than two months, Candlewood was able to run two separate sale processes for the Company’s staffing and transportation portfolios, with each culminating in an auction and then a sale of the portfolio for an amount in excess of book value.
With Candlewood’s guidance, Flexible executed on its filing in a timely fashion, which enabled the Company to continue funding its clients while working towards a sale of the assets. By running the sale process on an expedited timeline, the Company minimized the shrinkage of its portfolio, ensuring the highest possible value for the asset sales.