All Case Studies
Nº 015

Saving a Community Business

Financing Breakdown

Risks

Within days, the bank would close the doors, terminate all employees, and initiate bankruptcy.

Scenario

Turnaround

Industry |

Distribution

Key Challenges

Extremely short timeframe
Shareholder disputes
Bank demanding

Loan Type

Refinancing

Outcomes

Stabilized Liquidity
Revolving structure restored working capital, eased cash pressure, and kept operations steady.
Enforcement Avoided
The new loan relieved pressure from the Bank, allowing the owners to keep control and preserve 50+ jobs.
Path to Bankable
With better governance and improved performance, the company was able to return to a bank lender.

Lender Type

Private Credit
Bank

Result |

Liquidity Stabilized
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Overview

Saving a Community Business

Diamond Willow refinanced their client with a $2.5 million revolving facility on a rushed timeline, avoiding enforcement and keeping jobs in place.

The client is a Calgary-based building materials company known for doors, hardware, and moldings, serving homeowners and builders across Southern Alberta. From a five-person shop in 2006 to a 56,000-square-foot warehouse and showroom with a 50-plus team, they’ve grown by pairing quality product with reliable delivery.

When covenant breaches and a shareholder dispute drained liquidity, the senior lender was prepared to enforce within days. The remaining partner, referred by a community contact, asked for help. Diamond Willow cleaned up governance, built a lender-ready case against quality receivables, inventory, and equipment, and stabilized cash so payroll and production continued.

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The Challenges

  • Covenant breaches and weak recent results undermined confidence with the incumbent lender.
  • Shareholder-driven strain where personal issues depleted company cash and added guarantee complexity.
  • Expedited timeline with the senior lender days from enforcing remedies and layoffs pending.

Risk Mitigants

  • Operational rebound with improving demand, revenue, and EBITDA in the most recent period.
  • Governance clean-up removing the shareholder and the related issues from the business.
  • Loan was secured by AR, inventory, and equipment

Saving a Community Business

The new revolver put working capital back on the floor. Vendors were paid, payroll was met, and production stayed on track. The company kept control during the transition, and with better governance and performance, they were able to return to a bank lender.
Watch Video Testimonial

$2.5

million revolving line.

Senior lender

control averted with days to spare.

Borrower returned

to the bank post-stabilization.
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