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Receivables Protection Program
Madison Liquidity Investors offers a Receivables Protection Program
for vendors that are put at risk by supplying products or
rendering services to customers that may file for bankruptcy or that
may become administratively insolvent during a bankruptcy reorganization.
Under the Receivables Protection Program and in accordance with the
terms of the Receivables Agreement, Madison Liquidity Investors will
make a recovery payment to a vendor in the event a covered company
files for bankruptcy or becomes administratively insolvent during
its bankruptcy reorganization within the coverage period. The
Receivables Protection Program eliminates the risk and uncertainty
that a vendor faces from a bankrupt company by providing (1)
a pre-determined recovery amount and (2) a payment at the onset of
the bankruptcy filing rather than at the resolution of the
bankruptcy process.
A vendor enters into the Receivables Protection Program by (1)
selecting the coverage period and the recovery payment percentage,
(2) executing the Receivables Agreement, and (3) paying a fee based
on the amount of invoices the vendor wishes to protect. Accordingly,
the Receivables Protection Program is flexible enough to provide
protection on individual accounts rather than a portfolio and a
coverage period of as little as three months.
Madison is able to provide coverage for a variety of different
companies in a variety of industries including the automotive
industry. Please email or call us at 800-896-8913 to learn how
the Receivables Protection Program may reduce your exposure to
financially distressed companies.
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