Bibby Financial Services Provides $750,000 DIP Financing to Arizona-Based Cable Company

Bibby Financial Services said it provided a $750,000 accounts receivable line of credit to an Arizona-based company that provides underground cabling services. The company, which has about $5 million in annual sales, entered Chapter 11 bankruptcy proceedings in the first quarter of 2009. The line of credit has been approved by the bankruptcy court as a debtor-in-possession (DIP) facility, giving Bibby Financial Services the superior creditor position.

“It’s really an excellent factoring deal for us because the cabling assignments are very short term – completed in two or three days – and then invoicing follows immediately providing a very clean paper trail,” said Stewart Chesters, CEO of Bibby Financial Services. “Additionally, Bibby has the advantage of having the financial flexibility and in-house legal expertise, rare in factoring companies, to execute on DIP deals. In this economic environment we are seeing more and more opportunities to provide DIP support, which traditionally would have been the purview of the banking industry. With our knowledge of the bankruptcy rules and our financial flexibility, we have the expertise to step in and take the lead to help our clients continue to operate as they reorganize.

“DIP financing is another example of how factoring is playing an important role in advancing the economy,” Chesters said. “Over the last year, U.S. factors have provided entrepreneurial businesses at the forefront of the recovery with the funding they need to survive and grow, which the inwardly focused banking sector has denied them.”

Bibby Financial Services is a worldwide market leading specialist of business cash flow solutions to small and medium-sized enterprises. With offices in 10 North American cities and 27 countries around the world, its product portfolio includes receivables finance, factoring, export finance, purchase order finance, specialist solutions for the staffing and trucking sectors, and it is an approved lender for the Export-Import Bank’s working capital guaranty delegated authority program. Bibby Financial Services is a subsidiary of The Bibby Line Group, a 202 year-old privately held company based in the United Kingdom.

For more information on Bibby Financial Services, visit: www.bibbyusa.com, or on Facebook at: www.facebook.com/bibbyfinancialservices.northamerica.

For expert advice on small business, please visit CEO Stewart Chesters’ blog at: http://www.bibbyusa.com/ceoblog