A global producer and marketer of dairy products (Client) used a distributor network to get their product sold through retailers. Unfortunately, one of their major distributors filed for bankruptcy under Chapter 11. This distributor owed the Client over $14MM, which would have been settled for pennies on the dollar. In addition, the settlement was delayed as the bankruptcy case wound its way through the legal system.
Anchor paid the Client $14MM in Trade Credit which they were able to use immediately to offset a portion of the cash cost for media purchases. This payment from Anchor gave the Client the ability to avoid the financial loss of the bankruptcy claims immediately.
Anchor placed the Client’s National Cable, Local Television, Digital Media and Out of Home Media for both its national and regional companies. Media was delivered at the existing guidelines, specifications, pricing and added value developed by the Client’s multiple local and national Media Agencies.
- Client avoided the losses inherent with the disposition of bankruptcy claims.
- Client was able to benefit from using the Trade Credit immediately, rather than waiting for a bankruptcy claim to be processed.
- Media was delivered adhering to the established media buying strategy and pricing developed by the Client’s multiple agencies.