As you may be aware, 1 Global Capital LLC and 1 West Capital LLC (collectively, the “Debtors”) each commenced voluntary chapter 11 cases (collectively, the “Chapter 11 Cases”) pursuant to title 11 of the United States Code, 11 U.S.C. §§ 101 et seq. (the “Bankruptcy Code”), on July 27, 2018 (the “Petition Date”), in the United States Bankruptcy Court for the Southern District of Florida (the “Bankruptcy Court”). You may have questions concerning the Chapter 11 Cases and whether they affect the Agreement or the MCA. I write to address some of these questions.
Since the Petition Date, the Debtors have continued to operate their business under the supervision of the Bankruptcy Court and the provisions of the Bankruptcy Code. Among other things, the Bankruptcy Code provides that by operation of law the Agreement and MCA are assets of the Debtors’ chapter 11 estates. The Bankruptcy Code requires that the Debtors collect and reduce to money the Debtors’ assets for the benefit of their creditors. This duty requires that the Debtors take all appropriate action to collect the full amount of the MCA.
To this end, the Bankruptcy Code provides that the Debtors may enforce the Agreement against the Merchant and that the commencement of the Chapter 11 Cases does not diminish, impair or otherwise lessen the Merchant’s obligations to the Company under the Agreement. In particular, the Merchant continues to be required to remit the Company payment of the MCA in the amount and in the manner provided for in the Agreement. In the event, an MCA is not timely paid or another obligation under the Agreement is not timely performed, the Bankruptcy Code provides the Debtors the right to commence a lawsuit in the Bankruptcy Court or other courts of competent jurisdiction to enforce the Agreement and payment of the MCA.
In sum, following the Chapter 11 Cases, the Merchant continues to be obligated to pay the Debtors the full amount of the MCA. Failure to remit payment timely may result in the Debtors bringing a lawsuit against the Merchant to enforce payment.
Rest assured that payments made by the Merchant are fully credited to its account. If the Merchant needs assistance in meeting its obligations under the Agreement, we are prepared to discuss this with you.
1 Global Capital LLC & 1 West Capital LLC have updated the routing and account number for wire and merchant-initiated ACH transfers. Please contact the collections department at (888) 374-3150 or email at Collections@1stglobalcapital.com to obtain the new information.
All payments sent to 1 Global Capital LLC & 1 West Capital LLC are being applied to merchant accounts.
Please make sure you continue to make your payments to 1 Global Capital or 1 West Capital. If you have any questions please call the collections department at (888) 374-3150 or email at Collections@1stglobalcapital.com.