SIT­U­A­TION

• Diverse (the ​“Com­pa­ny”) was an equip­ment mar­ket­ing com­pa­ny that made progress billings and ITS was a whol­ly owned man­u­fac­tur­ing subsidiary
• The Com­pa­ny was sub­stan­tial­ly over-drawn on 1^st Lien work­ing cap­i­tal loan
• The Bank of North Dako­ta was not lend­ing addi­tion­al funds
• The Com­pa­ny faced a liq­uid­i­ty crisis

OUT­COME

• Nego­ti­at­ed with lenders on Real Estate and Equip­ment to defer 4 months of lease payments
• Orig­i­nat­ed DIP loan with Fam­i­ly Office investor
• Resolved shar­ing ratio on first pro­ceeds from prim­ing DIP loan
• Suc­cess­ful­ly closed Sec­tion 363 sale to Turn­bridge Cap­i­tal with­in 150 days of fil­ing for Chap­ter 11. The com­pa­ny was merged into their port­fo­lio com­pa­ny, Cimar­ron Energy

“Chi­ron did a fan­tas­tic job secur­ing DIP financ­ing for ITS (and its affil­i­ate Diverse Ener­gy) to achieve the nec­es­sary oper­at­ing cap­i­tal to run a suc­cess­ful Chap­ter 11 and 363 sale process in the South­ern Dis­trict Texas Bank­rupt­cy Court under Judge David Jones. The sale process was suc­cess­ful in pro­vid­ing a recov­ery for cred­i­tors, preser­va­tion of the busi­ness as a going con­cern, and con­tin­ued employ­ment for its per­son­nel.” — Cary Gross­man, CRO