CASE STUDIES
Metro Capital has been retained by virtually every conceivable type of business. The representative set of engagements below is provided to simply illustrate the breadth of our client base and the effectiveness of our service offerings. References are available upon request.
West Coast Systems Integrator
Challenge: This client came to Metro Capital with a variety of problems. As a result of a former CFO having embezzled in excess of $600,000 the company was cash starved, overly leveraged, having difficulty in meeting their obligations to their $1.5M SBA lender, and had approximately $700,000 of delinquent accounts payable.
Metro Capital was able to: Negotiate a forbearance/modification agreement with the SBA lender, giving the client the breathing room they needed.
Negotiate with all trade creditors to dramatically reduce outstanding payables, including one settlement for 14% of the $200,000 owed as payment in full.
Originate a short term lending facility that provided the cash necessary to pay the settlements negotiated.
Successful Outcome: The SBA loan and normal trade payables aside, the client is now essentially debt free, in good standing with their SBA lender, and well positioned for rapid growth.
Mid-Atlantic EPA Compliance Firm
Challenge: The principal of this company came to Metro Capital as a result of having overpaid when he initially purchased the company, along with macroeconomic events that caused a downturn in company revenues/margins. The firm had a secured lender owed $350,000 and delinquent payables of $800,000.
Metro Capital was able to: Settle with the secured lender for approximately 32% of the outstanding balance. Reduce the delinquent payables by approximately 75%. Assist the company in finding a buyer for the now healthy organization.
Successful Outcome: With the help of Metro Capital, the firm was profitably sold to a larger competitor with all employees being retained and the principal receiving a healthy long term employment contract.
Utah Phone, TV and Internet Company
Challenge: This client came to Metro Capital with trade debt in excess of $1M, a balance sheet indicating negative net worth, and some principals looking to exit the business.
Metro Capital was able to: Negotiate across the board reduction of debt with creditors equal to approximately 72% of principal amount owed.
Successful Outcome: Now that it has a positive net worth, this client was profitably sold as a “bolt on” acquisition to a much larger company headquartered in Colorado.
South East Technology Rental Company
Challenge: This “C Credit” client simply needed working capital to help out with the peaks and valleys that are endemic to their business.
Metro Capital was able to: Arrange a $1.2M term loan with an interest rate of 10% secured by Accounts Receivable and equipment inventory. The term is 3 years, interest only, and pre-payable without penalty at any time.
Successful Outcome: Client now continues as a viable, working enterprise, with room for growth and expansion.