Nola Capital Corporation
Distressed Capital

Distressed capital is a reasonable, prudent from of debt financing and/or equity investment based largely on the
liquidation value of accounts receivable, inventory and fixed assets rather than cash flow and profitability.  We have 38
years of experience in this arena.  We understand that many distressed situations are not the fault of the management
team.

Terms
Terms are different than in conventional financing because of the higher risks and shorter duration of the loan or
investment.  Most distressed capital is intended to be in place for only a few months to a few years.  It is not
uncommon for distressed lenders and investors to become involved in the operation or oversight of a client until certain
milestones are reached in the improvement of its financial situation.  After the client's situation has been stabilized, it is
normal for the distressed capital to then be taken out when the  company is recapitalized with long term, stable funding
in order to continue normal operations.

Underwriting
Operating history, previous profitability, industry trends and other criteria are carefully analyzed.  Financial projections
and an analysis of a project’s balance sheet are also critical.  Reputable, reliable valuations of all assets is a key
component of distressed funding.

Our Focus
A large number of distressed situations have recently been created in the energy, mining and real estate sectors.  Erratic
commodity prices and a slowing economy are creating extreme hardships and we work with companies that need to be
rejuvenated and resurrected with fresh injections of equity and/or more livable debt facilities.  
  •   We work with companies needing to sell assets.
  •   We work with companies wanting to purchase distressed assets.
  •   We work with lenders and investors who want to exit from their current involvement with distressed situations.

Criteria
  •   Amount Requested: Minimum $10,000,000
  •    Must have a reliable set of books.
  •   Client must be flexible and willing to face the reality of their situation.
  •   Liens / Judgments - Not a deal breaker
  •   Current Defaults - Not a deal breaker
  •   Bankruptcy – Not a deal breaker
  •   Public or Private Companies
  •   Client may be a current lender holding problem loans, an investor or a company needing assistance.

We work with clients on:
  •  Bankruptcy Avoidance
  •   Foreclosure Bailout and Bankruptcy Workouts
  •   Injections of Fresh Equity
  •   Restructuring
  •   Discounted Payoffs    
  •   Shareholder Buyouts
  •   Note Purchases
  •   Private Funded Loans
  •   Asset Sales
  •  Bridge Loans
  •  Removing loans from banks and refinancing that debt elsewhere

United States Only
All distressed capital clients must be headquartered and the majority of assets located in the United States.
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