BC Funding, LLC f/k/a Bankcard Funding Completes Sale through Bankruptcy Proceeding
In 2012, Olshan served as chapter 11 bankruptcy counsel to BC Funding, LLC (f/k/a Bankcard Funding) in its successful, yet highly contentious, bankruptcy case. The matter proceeded before Judge Grossman in the United States Bankruptcy Court for the Eastern District of New York. Bankcard Funding was engaged in the merchant cash advance business, advancing its own and syndicated funds to retail establishments. Though the portfolio was performing and the business was actively working with merchants and syndicators to make new advancements, challenges from the legacy debt holders prompted its chapter 11 filing. Faced with a tight budget and timeline, through Olshan’s guidance, Bankcard Funding continued to operate post-filing and market its business. Olshan navigated Bankcard Funding through the bankruptcy process which involved approaching many potential buyers, facilitating meetings and presentations and bringing the company’s adverse constituency to the table. Olshan’s efforts ultimately resulted in a consensual sale of the operating portfolio to industry leader Strategic Funding. That sale closed less than five months after the bankruptcy filing. Through this process, Olshan’s efforts ensured survival of the core business and maximized the value to creditors. In January 2013, the bankruptcy court confirmed a chapter 11 plan providing for the distribution of the sale value generated.