In a recent turnaround transaction XYN was retained to value the receivables of a small hospital in the northeast. The facility was entering Chapter 11 and as part of the process the receivables had to be valued. The finance company that ultimately provided the post petition financing relied on the valuation when it entered into the finance agreement with the facility and awaited court approval.
Following the approval, the finance company wanted to advance funds on the receivables however with no expertise that was an uncomfortable situation. XYN was then engaged to “service” the transactions providing valuation for each batch that was funded based on a claim by claim review. With ongoing monitoring by XYN the finance entity was much more comfortable with the entire transaction knowing a daily review of the receivables’ value was being performed.
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