advisory statement – Case Study

The case studies presented herein are for illustrative purposes and reflect historical performance trends observed within our portfolio since 2015. Every asset acquisition is subject to a rigorous proprietary valuation process. While we provide immediate capital liquidity through non-recourse transactions, final asset recovery is subject to market fluctuations, debtor solvency, and regional legal frameworks. Our firm operates as a principal purchaser; we do not provide legal or tax advice to original creditors regarding the accounting treatment of their asset disposition.

Primary beneficiaries

  • Core Benefit: Full recovery of COGS (Cost of Goods Sold) on delinquent trade payables and the offloading of complex corporate litigation risk.

  • Impact: Stabilization of accounts receivable and the elimination of legal overhead associated with pursuing dissolved or inactive entities.

Wholesalers

B2B Service Providers

Corporate Creditors

project milestones

  • Corporate Investigation

    Verification of corporate status and the viability of personal guarantees.

  • Risk Transfer

    The creditor is fully indemnified and compensated; the legal burden of pursuit shifts entirely to our firm.

  • Principal Localization

    Tracking down the responsible parties behind dissolved or inactive business entities.

  • Commercial Settlement

    Reaching a resolution on high-balance trade payables through legal or professional mediation.

brief description

A construction supply wholesaler was holding significant delinquent trade payables from several defunct subcontractors. The wholesaler didn't have the legal bandwidth to pursue these corporate entities or their personal guarantors.

We acquired the commercial contracts and personal guarantees as a bulk package. Our team took over the legal and investigative burden of locating the principals behind the dissolved entities.

The wholesaler closed their fiscal year with a strengthened balance sheet, having recovered the cost of goods sold (COGS) through our acquisition rather than writing the accounts off as a total loss.

client

Confidential

project budget

$2.5M

date started

16 May 2023

visit site

TBA