W H Y S E L L ?
Cash Out Now
If you cash out now:
Your business will receive immediate liquidity and your cash flow will improve.
Typically, days after the paperwork is finalized, Fair Harbor Capital delivers your funds.
Your company will be relieved of the risks accompanied with the Chapter 11 process.
Once Fair Harbor Capital purchases your valid claim, Fair Harbor Capital takes the case risk.
The guesswork is removed from the bankruptcy process.
Once Fair Harbor Capital agrees to purchase your valid claim, you are no longer at the mercy of the bankruptcy process and the uncertain outcome of the bankruptcy case.
The costs associated with bankruptcy proceedings are reduced.
After Fair Harbor Capital purchases your claim, you do not need to follow the case, file ballots, or make any elections related to your claim.
Selling your claim is easy and hassle-free.
To submit your claim for consideration of purchase to Fair Harbor Capital, you simply send in the Assignment of Claim form and the supporting documentation.
Continue with the Bankruptcy Process
If you continue with the bankruptcy process:
Any future recovery of your claim is uncertain.
Absent the confirmation of a plan of reorganization by the bankruptcy court, it is often uncertain what a case might pay, if anything.
Your free cash flow is limited.
Firms can remain in bankruptcy for long periods of time, and the timing of any eventual distribution is unknown. Fair Harbor Capital has had investments in bankruptcies lasting ten years or more.
The bankruptcy process is time-consuming and distracting.
Keeping up with the review of paperwork and correspondence regarding bankruptcy can be daunting.
Evaluating your claim's worth can be heart-wrenching.
Trying to determine the value of your claim as the case proceeds and rumors fly can have a detrimental effect on company performance and objectivity.
Accounting for the unresolved claim is complex.
Knowing when to take the write off for any loss is not straightforward.
Notwithstanding Fair Harbor Capital's outlook for each claim purchased, each creditor (including individual Creditors' Committee members) is encouraged to make its own independent determination as to whether the sale price of the claim is acceptable to that creditor and is encouraged to consult with its own legal and/or financial advisors.
W H Y F A I R H A R B O R C A P I T A L ?
Fair Harbor Capital, LLC is a private investment vehicle specializing in distressed investing and the purchase of bankruptcy claims. Fair Harbor Capital is headquartered in mid-town Manhattan with a satellite office in Maryland.
We can cost-effectively participate in the bankruptcy process because our members have
decades of experience relating to bankruptcy matters;
relationships with the various bankruptcy courts; and
intimate familiarity with bankruptcy process and claims agents.
Consequently, we can provide an avenue to monetize delinquent receivables and provide liquidity for those who have been unintentionally caught in the process.
Unlike the average creditor, Fair Harbor Capital, through the ownership of numerous claims, can justify the legal, administrative, and accountancy costs associated with involvement and monitoring of a case. In short, we can leverage economies of scale.
Once we purchase and transfer your claim, we will be stepping into your shoes; Fair Harbor Capital takes the case risk. If the case turns out poorly, there is no recourse to you in regards to recovery percentages.
Fair Harbor Capital, LLC is not affiliated with any of the debtors or the courts, and does not provide legal counsel or provide any information as to the progress of any specific case.
H O W T O S E L L ?
You provide goods and/or services to a customer.
Your firm sells goods or provides services on typical credit terms.
Customer declares bankruptcy, leaving you with a delinquent receivable frozen in bankruptcy.
Your customer declares bankruptcy, leaving you with a delinquent receivable and a claim in the bankruptcy case.
You learn of our services via a letter from us or a referral.
Through the public records, we identify that you might be a creditor. We send you a letter indicating our interest in purchasing your claim. This is the starting point of our relationship. If you have not received a letter but are interested in discussing a claim, please click here.
You submit delinquent receivables for purchase.
If you want to sell us your claim, you simply execute the Claim Purchase Agreement form where indicated and return it to us via mail, e-mail, or fax. In some situations, we require invoices or other underlying documentation. At this point, for the most part, your time commitment to the process is complete. Please feel free to call or e-mail to discuss.
We file court documents of transfer.
Fair Harbor Capital files the required legal notices with the court and claims agents. When these documents are submitted to the court, all parties involved with the case are put on notice that the claim is being transferred to Fair Harbor Capital and that Fair Harbor Capital is stepping into your shoes as a creditor and taking the case risk.
We tender payment and step into your shoes.
Payments are typically made within days of the transfer of the claim.
Notwithstanding Fair Harbor Capital's outlook for each claim purchased, each creditor (including individual Creditors' Committee members) is encouraged to make its own independent determination as to whether the sale price of the claim is acceptable to that creditor and encouraged to consult with its own legal and/or financial advisors.