72-Hour Case Stabilization for Subchapter V
Court-Ready Working Capital Using Post-Petition AR Only
Subchapter V and small Chapter 11 debtor’s counsel (and their trusted advisors) who have a viable business, a blocked or frozen senior lender, and no traditional bank DIP option.
When MCA stacks and frozen seniors kill the DIP, this gives you a narrow, post-petition AR-only path to keep a real Sub V debtor alive long enough to confirm a plan.
When MCA stacks and frozen seniors kill the DIP, this gives you a narrow, post-petition AR-only path to keep a real Sub V debtor alive long enough to confirm a plan.
- Post-petition AR only (no roll-ups, no cross-collateralization)
- Non-priming interim by design
- No milestones, no coercive releases at interim
At a Glance
- Product: 72-Hour Case Stabilization facility using post-petition AR only.
- For: Subchapter V / small Chapter 11 debtor’s counsel with no bank DIP and MCA-distorted stacks.
- Next step: Download the order set and term sheet pack, then schedule a venue-fit call if it fits your case.
Two Wrappers. Same Economics. Your Call.
We run one economics engine on top of two legal wrappers. Choice of §363 sale
versus §364 DIP-lite is driven by judge, venue, and senior lender posture, not by
pricing.
§363 Post-Petition AR Sale
- Court-approved sale of post-petition AR and proceeds to Captiva.
- Pre-petition AR expressly excluded.
- Order designed to be free and clear of liens, with customary carve- outs and protections.
§364 DIP-Lite (Non-Priming Interim Facility)
- First-priority lien on post-petition AR and proceeds only.
- Interim orders structured to be non-priming; priming/AP discussions reserved for Final, if needed.
- Aligns with senior bank wanting to stay senior without writing a full DIP.
Wrapper choice is made with you, your venue, and your senior lender in mind,
not to change pricing.
Why Benches, Trustees, and Seniors Can Live With It
We design around non-priming interim orders and keep economics and adequate
protection arguments for the Final hearing, on a fuller record. The story is
simple: we only touch post-petition AR, we cap the facility and time-box the
exposure, and we hard-wire variance controls that lead to pause/tighten, not
surprise priming fights.
Post-petition AR only : No roll-up of prepetition collateral
Narrow and time-boxed : Capped facility, defined exit and budget
Clear variance controls : Negative variance leads to pause/tighten, not priming fights
Weekly Snapshot framework : Standard template for availability, variances, exceptions, waterfall
AP/priming addressed at Final : Interim stays non-priming; AP negotiated with seniors inside the budget
What You Receive (For Debtor’s Counsel and Trusted Advisors)
You are not buying a template; you are getting a repeatable play you can drop
into the right case.
Step 1
Get the toolkit
Clean, editable order sets (Sale + DIP-lite; interim + final). Sub V–ready term sheet (post-petition AR only; no roll-ups, no milestones at interim).
Step 2
Drop it into your case
Weekly Snapshot and reporting templates so your team controls the data and the story. Cash/AR availability, variances, exceptions, and waterfall in one standard framework. Budget structure that can be adapted to your venue and your judge.
Step 3
Run inside clear guardrails
Short venue-fit guidance (2–3 minute read) on how we’d propose structuring this in SDTX, SDFL, MDFL, DE, and similar courts. Explicit list of what we will not ask your judge to do.
Guardrails: Where This Belongs
This belongs in your case when :
- Sub V / small Chapter 11 debtor with viable core operations but an MCA- overburdened capital stack.
- Senior lender is a bank, SBA lender, factor, or ABL – not an MCA sitting unreviewed on top of everything.
- On a realistic 60–90 day view, debt-free operating cash flow is positive (the business throws off cash once you wipe debt service and non-essential spend).
This does not belong when
- Even debt-free, the business is persistently cashflow negative on your 13- week view.
- What you really need is a broad bank-led DIP with priming fights, roll-ups, or aggressive milestones on day one.
Have a live or upcoming Sub V / small 11 case and no bank DIP? Download the pack, then set up a short venue-fit call to see if this belongs in your toolkit.
Capital Solution Bancorp
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