Women’s Formalwear Manufacturer
Deal Size: $950,000
Funding Requested: Letter of Credit/Cash Funding
KTC was approached by a company that manufactured and imported women’s formalwear sold to boutiques all over the country. The company was just coming out of Chapter 11 bankruptcy and was in the middle of the busy season. The company had turned itself around and could not afford to miss out on approximately $1 million of purchase orders with its customers. Based on the financial condition of the company, however, the overseas manufacturer was not willing to manufacture and ship without a letter of credit in place.
KTC was able to secure its financing with the existing creditors under the confirmed bankruptcy plan and issue the letter of credit to the overseas manufacturer. Goods landed in the U.S., cleared customs and were shipped to the end customers in time to meet seasonal demand. KTC’s financing enabled the company to profitably stage itself for the next busy season.