Corefund Capital

Thanks for this.

The terminology is a bit confusing, tell me if I'm understanding correctly. I'm getting "terminations" as debtors (ie carriers) terminating agreements with CoreFund and obtaining a release.

That is, the receiver is attempting to restore the firm to an operational state, and then wind it down without leaving interested parties hanging?

I wonder if there's a merger/acquisition in the works as a possible way out. Seems the cleanest way to resolve this. Of course the initial step of getting it back to minimum functionality would have to be complete before any larger competitor would touch it with a 10 foot pole.

 

So what happens if they're upside down? Carriers would only get a % of what's due. If there's debt, who takes 1st position?

You can't even get the UCC filing removed right now, unless someone buys/pay's it off. And can someone buy/pay it off before court?

 

I hadn't considered it being handled like a bankruptcy, but that's an excellent point.

From the information I was seeing, it appeared that the firm was otherwise solvent, and that the personal dispute between the principals, and their irrational actions, was what got things egg shaped. I'm no finance expert, so just speculating and probably got it wrong. From my days of large scale I/T transitions to outsourcing, we called that a walk-in-take-over approach. In this case it would be CoreFund's existing book of business being restored to functional by the court, then absorbed by an acquiring competitor. Ultimately liquidated in a fashion that stakeholders remain whole, and CF employees get a new badge to enter the office and a new company name on their paychecks. In the mean time, ordinary buyouts and other transactions would be processed, but vastly slower.