This is an article on Law 360 dated February 11:
Social security disability firm Binder & Binder LLP asked for approval of a new $6 million loan on Tuesday as it navigates through the Chapter 11 process, claiming that its existing lenders would rather see the company liquidate than allow it to restructure.
Binder & Binder ... says that its existing loan has hamstrung its ability to intake new clients at a sufficient clip and keep the business afloat as federal disbursements have slowed under new government scrutiny. The firm asserts that new financing terms would be the only way for it to avoid liquidation, given the harshness of its current loan. ...
But the $6 million loan, which would be obtained from Stellus Capital Investment Corp., comes with the stipulation that Stellus gets the first lien position on all of Binder & Binder’s assets. The disability firm said it has shopped around and there is no “middle ground” in that regard. ...
Binder & Binder said that the slowdown in social security disability and veterans’ benefits has sapped its cash flow. It described the firm as being at a “critical juncture,” lacking the funds to pay its next payroll on Feb. 17, 2015. ...
Despite a prohibition on new advertising, one of the terms of its current loan, Binder & Binder said it is still handling approximately 1,000 new social security cases each month, and needs to keep its staff levels up to maintain the business. ...
1,000 new cases/month is not enough to maintain Binder at anywhere near the size it is now or allow it to pay back that loan.
ReplyDeleteI saw this article about 10 days ago. The situation described in the article seemed pretty dire but I have not seen any later article updating the information.
ReplyDeleteI think the company should be liquidated. It is strange how the exceedingly wealthy HIG firm (the venture capital firm that majority owns this firm) plus the very wealthy Bibder bros. won't use any of their personal wealth for the needed six million dollar loan. Shows how little confidence the owners have in their own company and it's survival prospects.
ReplyDeleteThere is some updated info here, though I can't read the whole thing:
ReplyDeletehttp://bankruptcynews.dowjones.com/Article?an=DJFDBR0120150220eb2kmmuxr&cid=32135018&ctype=ts&ReturnUrl=http%3a%2f%2fbankruptcynews.dowjones.com%2fArticle%3fan%3dDJFDBR0120150220eb2kmmuxr%26cid%3d32135018%26ctype%3dts
@4:55 From the little that you can read of that story, it seems like the major lenders want to pull the plug while company management is trying to keep the firm going.
ReplyDeleteLatest news states a judge allowed the loan. It says that'll buy them 5 whole weeks...
ReplyDeleteany updates?
ReplyDeleteAny updates on the Binder situation? If there's no update can you at least say there's no update? How can you be a Social Security news blog with no Binder updates?
ReplyDeleteAny updates at all on the Binder firm? Are these comments ever read by the blog's creator, or is it just presumed that the the insider NOSSCR folks know what is going on so that outsiders aren't kept up to date on the bankruptcy situation?
ReplyDeleteThe Firm is still operating as normal. They're even hiring new people.
ReplyDelete