Working capital platform Raistone, which was caught up in the collapse of First Brands, has closed its doors after a proposed sale to Marblegate Asset Management fell through, GTR can reveal.
New York-based Raistone, whose platform connected investors to companies seeking working capital financing, laid off staff shortly after First Brands filed for bankruptcy last September. It emerged that Raistone relied on the US auto parts supplier for 80% of its revenue.
Chief executive Dave Skirzenski said in December that Raistone was “still busy” despite the hit to its revenue, and the Financial Times reported days later that the company was looking to sell its business to Connecticut-based investment firm Marblegate.
However, a former Raistone employee told GTR today that Marblegate backed out of the deal in mid-January.
Afterwards, on January 16, Skirzenski informed staff that the company was winding down and was preparing to file for Chapter 7 bankruptcy, they said. Employees lost access to computers later that day.
The former employee added that no new business was done after the October layoffs.
Raistone’s activity with First Brands largely involved originating supply chain finance deals and distributing them to external investors, such as asset management companies.
Court filings in the wake of First Brands’ bankruptcy showed group companies owed at least US$684mn under those facilities.
Raistone has said in separate court filings that one of its special purpose financing entities is also owed at least US$172mn in connection with receivables it acquired from First Brands companies.
Restructuring officials have accused First Brands’ founder and chief executive of obtaining finance against falsified invoices and double-pledged inventory.
Skirzenski and Marblegate did not immediately comment when contacted.
