Strategic Focus
GCF works hard for every creditor
Distressed debt is pervasive and exists in a variety of forums, from Chapter 7 wind-downs, to billion-dollar Chapter 11 reorganizations, to state court receiverships. GCF buys creditor claims originating from complicated default and bankruptcy situations.
GCF works with individual creditors as well as institutional creditors of all sizes – from small businesses to state governments to the world’s largest financial institutions. GCF’s diverse portfolio is made up of creditor claims of all types and sizes.
By leveraging decades of legal and financial analysis experience, GCF is able to acquire and litigate secured and unsecured claims, including the lowest priority claims, in complex default and bankruptcy proceedings.
Specializing in several types of bankruptcy proceedings
Chapter 11
A Chapter 11 bankruptcy enables a company in financial distress to maintain control of their business while a reorganization plan is developed and executed. By filing a petition with a bankruptcy court, the organization becomes a “debtor” but doesn’t have to pay its financial obligations – such as invoices from suppliers or contractors – made prior to the filing. These debt claims get placed in a priority scheme dictated by bankruptcy code to be resolved through the legal process of bankruptcy.
Chapter 11, Subchapter V
Bankruptcies categoriazed under Chapter 11 Sub V are primarily for small businesses with secured and unsecured debt totals under a federal statutory amount. They have different protocols to execute and are subject to oversight by a U.S. trustee, although plan confirmation requirements are often more relaxed.
Chapter 7
Chapter 7 liquidation proceedings typically involve assets that are sold by a bankrupt company through a court-appointed trustee. Bankruptcy cases may be converted to Chapter 7 if they can’t be resolved through an initial court-accepted reorganization plan. This may make it even less likely that unsecured creditors receive claims payment. Oftentimes, there are simply no meaningful assets to distribute.
Assignment for the Benefit of Creditors (ABC)
ABC is a state-based legal proceeding that appoints an independent fiduciary representative (or assignee) to manage a company’s orderly wind-down. Following state law, the assignee sells a company’s assets and then distributes proceeds to creditors who filed claims. As the name suggests, the ABC process may provide payments to creditors and is typically quicker than traditional bankruptcies, however the process of selling assets, often at discounted prices, to pay creditors is similar to federal bankruptcies.
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GCF can resolve your organization’s creditor claim.