Bankruptcy Financing

Bankruptcy Trustee Loans

Bridge financing for bankruptcy trustees to carry and maintain property pending a bankruptcy sale. 

Bankruptcy trustees often have real estate assets, but lack adequate cash flow to maintain the property and need a bridge loan to maintain the property or prepare the property for sale.

We arrange trustee secured financing from $50,000 up to $20 million to chapter 7 and chapter 11 trustees to pay the out of pocket marketing costs incurred in preparing a property for sale. 

Debtor-in-Posession Financing

A secured loan from our affiliate, Racebrook Capital, can maximize asset value of the property to be sold when the secured lender will not make further advances. 

A chapter 11 debtor may have the use of rents, but need additional financing to maintain the property or prepare it for auction. A debtor-in-posession loan from Racebrook gives a debtor flexibility in running its business and preserving core assets needed for a reorganization plan, while quickly selling the non-core assets.

Section 363 sales conducted by Racebrook, and our affiliate, Sheldon Good & Company, convert non-income producing property to cash for bankruptcy stakeholders. 

Financing for Secured Creditors

Loans to secured lenders and loan servicers to facilitate sale of collateral. A secured lender or loan servicer may be unable to provide additional funds to a debtor in bankruptcy, even if funds are needed to repair and maintain the property. Where the lender/servicer consents to a debtor's cash collateral budget for use of rents, there may be legitimate reasons for the additional financing to enhance the value of the property prior to it being auctioned.

Racebrook Restructuring works with our affiliate, Racebrook Capital, to arrange loans for secured lenders and loan servicers.