Spotlight on Structuring: Nova Bridge Capital

Welcome to Nova Bridge Capital
June 28, 2016
Show all

Spotlight on Structuring: Nova Bridge Capital

In the aftermath of the 2008 recession, a business owner’s manufacturing business was struggling and was not profitable for several years. With negative financial covenants and mounting losses, its credit facility was pulled by the bank and led to an onerous forbearance agreement. Lack of liquidity eventually exacerbated poor business financial conditions. The continued financial bleeding spread to the owner’s personal finances leaving him facing foreclosure on his residence.

With challenging personal credit and insufficient personal income, the financing prospects looked indeed dire. No bank would provide financing given the negative aspects of the credit. Through a referral, the borrower came to Nova for advice.

By employing creative structuring techniques, such as escrowing future maintenance, real estate taxes and debt service payments, Nova was able to provide a solution quickly and the borrower…

Read more