Solas Finance provides financing to companies that are experiencing a liquidity crunch whether precipitated by a shift within an industry, an unexpected event or an economic downturn, pressure from existing lender(s), insolvency or bankruptcy.
Our loan facilities range from $1 million to $10 million for a term usually between six months and three years. We are an asset-based lender and will lend against real estate, equipment, inventory, accounts receivable, tax credits and other intangibles. We can also consider smaller and larger loan amounts on a case-by-case basis.
Using our experience in structured finance, we will endeavor to assist management to turn around the company, return to profitability and build a sound financial track record with the goal of allowing the company to become eligible for conventional financing in a relatively short time frame. The proceeds of our loans are generally used to repay existing lenders and in some cases may also provide fresh working capital to enable the corporation to achieve its strategic objectives.
Solas Finance also provides financing to companies who have filed for bankruptcy protection under the CCAA or the BIA, in the form of either Debtor-in-Possession financing (provided under court supervised proceedings and allow the company to continue to operate while undergoing financial restructuring) or financing a Proposal to Creditors in order to graduate from bankruptcy.