How did you find me?
We obtained your contact information from public bankruptcy documents. We believe we provide a valuable service that may be of interest to you.
Why doesn't the debtor just pay me?
The Bankruptcy Code states that the filing of a petition with the court stays all actions against the debtor. This prevents you from pursuing remedies against the debtor's assets or taking other actions.
What if the consideration you receive from the Debtor is worth less than what you paid me for the claim? Will you demand your money back?
No. While Hain Capital Group will require that the claim it is buying is a legitimate claim backed by evidence, its standard documentation does not include recourse with regard to recovery percentage.
Why should we sell our debt?
- Immediate Liquidity. According to Standard & Poor's, the typical length of a major Chapter 11 reorganization from the initial filing of the petition to the actual distribution to creditors of funds or securities (if any) is nearly three years. Indeed, recovery (if any) to trade claimants usually takes an additional several months from the effective date of a plan of reorganization. The sale of your trade claim will result in the immediate conversion of your non-performing receivable into cash.
- Elimination of Bankruptcy Review and Correspondence. Typically, Chapter 11 reorganization requires a great deal of correspondence between the debtor, the bankruptcy court, and creditors. The sale of your trade claim will curtail the correspondence to you and eliminate your responsibility to follow the proceedings.
- Elimination of Recovery Risk. Hain eliminates your recovery risk. Hain is a fund specializing in distressed companies and thus is able to spread this risk over Hain's large portfolio of investments.
- Elimination of Consideration Risk. In successful reorganizations, creditors can receive cash, bonds, stock, or a combination thereof. Often, and particularly in smaller bankruptcy cases, bond and stock consideration paid cannot be liquidated efficiently.
- Potential Tax Advantages. There may be tax advantages associated with selling your claim. Please consult with your tax advisor for details.
- Potential Accounting Advantages. There may be accounting advantages associated with selling your claim. Please consult with your accountant for details.
What recovery rate do creditors usually get from debtors?
Each case is unique. In perhaps the majority of cases, there is virtually nothing left to pay unsecured claims after administrative expenses and secured creditors are paid. Furthermore, if distributions are to be made, they could take months or even years to materialize. A dollar today is worth much more than a dollar in a year's time, particularly when the released cash can be used to re-invest in your business.
Is Hain Capital a broker?
Hain Capital is an investment management firm with a large amount of available capital. Hain Capital purchases claims on a principal basis.
Aren't all trade claim buyers the same?
No. Hain Capital provides an exceptional level of service and competitive pricing to its customers, as evidenced by its customers' written testimonials. Also, Hain Capital Group, LLC is a member of the Trade Claim Buyers Association ("TCBA") and the Better Business Bureau. The TCBA was founded in 2002 to promote standards and practices, such as timely docketing and payment, that are fair and beneficial to the trade claims business.
We are confident that when you do your due diligence, you will choose Hain.
How does Hain Capital determine a price?
Hain employs experienced personnel with a background in distressed reorganizations. These personnel analyze a company, its chances for survival, trends in its industry and the legal challenges it faces. Hain Capital then determines whether a recovery is possible and the timing and form of any potential distributions.
When do I get my cash?
Typically, within five business days of the execution of documentation.
Does Hain buy priority claims?
Certainly. Hain Capital purchases all types of priority claims including administrative, secured, lien, tax, reclamation and 503(b)(9) claims.
What if the Debtor does not list the amount it owes me correctly? Does Hain buy claims that are classified as contingent, unliquidated or disputed?
Hain Capital will pay you for your scheduled claim based on the amount shown on schedules filed with the bankruptcy court. Please contact Hain Capital for details regarding other claim types.
If Hain wants to buy a claim, doesn't that mean it's worth something?
While Hain would like to claim that Hain's personnel are prescient, that is simply not the case. Hain and other firms often purchase claims that are ultimately worthless. An unfortunate feature of bankruptcy reorganizations is that the direction of a case can change extremely rapidly in ways that simply cannot be predicted, even by experts.
Will the debtor view me unfavorably for having sold my receivable?
As anyone who has been involved in a bankruptcy knows, the debtor is in a struggle for its survival. Tracking the activities of suppliers with respect to pre-petition amounts is very low on a debtor's list of priorities. Simply providing any terms on post-petition shipments (which will incidentally be accorded administrative expense priority by law) will make your customer very happy and will improve its chances.
Is Hain Capital affiliated with the debtor or the court system?
No. Hain Capital is an independent investment fund.
Is the process confidential?
While court proceedings are generally a matter of public record, Hain is very careful to not disclose any confidential information, including the price paid.