SouthStar Capital funded a $14 Million Debtor-in-Possession (DIP) Facility for a leading warehouse-staffing and national logistics company headquartered in Tennessee. The transaction included the buyout of the company’s existing DIP lender, which had reached its maximum exposure. With over $60 Million in annual revenue and a workforce that scales to more than 5,000 employees. The company required immediate access to working capital to sustain payroll, maintain operations, and navigate its reorganization process.

The flexibility and liquidity needed to support the company’s upcoming peak season and long-term recovery. The financing ensures stability through bankruptcy proceedings and positions the company for renewed growth post-reorganization.

“This transaction underscores SouthStar Capital’s ability to respond quickly and strategically to complex financial situations,” said Michael Haddad, President of SouthStar Capital. “By stepping in to replace the existing lender, we provided the client with the capital and partnership needed to keep operations moving forward and set the stage for future success.”