HOME
PRE-BANKRUPTCY PUT OPTIONS
IN-BANKRUPTCY PUT OPTIONS
STRATEGIES
CASE STUDIES
BANKRUPTCY CLAIMS

In-Bankruptcy Put Options

ETG Enables Suppliers to Maintain Sales to Customers in Bankruptcy

 
One of your company’s most important customers has filed for bankruptcy protection. It is vital for your company to be able to keep selling product to this customer in order to realize your company’s revenue projections.
Furthermore, your bank is concerned that maintaining the current line of credit and terms with your bankrupt customer is too risky. In fact, your bank will no longer include your customer’s accounts receivable as loan collateral.
 
ETG’s In-Bankruptcy Put Option enables a supplier to continue selling and shipping to distressed companies who are in the process of restructuring while in bankruptcy. You make the call to buy ETG’s In-Bankruptcy Put Option to safeguard your receivables for a period of time, e.g. 6 months.
In the event of your customer’s liquidation, and failure to pay claims for the receivables accrued during the bankruptcy, ETG will cover 100% of your receivables accrued during the bankruptcy.
 

How does it work? The details.


With respect to the substance of Put Options, many credit professionals are somewhat versed in more common alternative forms of credit-risk mitigation, such as Factoring and Trade Insurance. However, once a Customer has filed for bankruptcy protection, factoring and insurance, are rarely, if ever, offered.


Advantages of ETG's Put Options over Factoring


Advantages of ETG's Put Options over Trade Insurance


Ways to use ETG's Put Options as a Complement to your Factoring Program or Trade Insurance Policy


ETG's Competive Andvantages





    © 2018 ETG Capital Advisors LLC. 25 West 39th Street, 16th floor New York, NY 10018 212.300.6700
All Rights Reserved. Powered by BlueSwitch.