ABL/Factor Alliances to Fully Resolve Subordinate Debt and Put Lenders in First Position

Second Wind named one of ABFJournal’s “Innovative Companies” of 2023.

Our Article 9 reorganizations resolve assets of sub-debt in just weeks, creating a new bridge between exiting and incoming lenders, while changing the way ABLs evaluate opportunities.

Over-leveraged companies in need of factoring/ABL facilities won’t qualify for terms when assets or receivables are encumbered by a host of secured and subordinate debt. An Alliance with Second Wind will reorganize your target entity, removing all subordinate liens and obligations while putting you in first position to lend.

More Originations:

ABLs can now review opportunities based on underlying asset value, without regard to sub-debt which is resolved through our Article 9 process.

Clean Exits:

ABLs can exit underperforming credits efficiently, without formal liquidation, providing for an incoming lender to refinance those same assets, resolved of sub-debt.

Client Preservation:

Our process can preserve a client relationship threatened by MCAs or other sub-debt, by resolving the assets and giving the business a clean new balance sheet in just weeks. 

Over the past ten years, Second Wind has conducted thousands of reorganizations in the distressed space. Through a single, frictionless transaction, we preserve the full ongoing concern value and continuity of operations of a distressed business while fully resolving subordinate debt. For the ABL or factoring professional, we deliver back a pristine, debt-free enterprise in 45 to 60 days.

For alternative lending professionals, Second Wind turns untransactable deals into great situations. Ask us how.

“We recently underwrote a business that was (otherwise) overleveraged and unfinanceable. Through the Article 9 process, the business was restructured and relaunched into a newco in a matter of weeks. FSW Funding was then able to come in with a financing line of credit to help the company moving forward.”

Haze Walker, FSW

“Through the Article 9 sale process, a new company was able to purchase the assets and take over the existing business, and we were able to collect the highest potential volume on the debt. This can be an effective process for giving good companies with good business models an opportunity to breathe new life.”

Gino Clark, Managing Director, White Oak CF  ABFJournal 07/2022