Financing supports continued operations for meal-solutions producer through court-supervised restructuring; borrower name withheld at company’s request
Toronto, Ontario — July 15, 2026 — Garrington Capital, a senior secured, asset-based lender serving mid-market companies across the United States and Canada, today announced it has provided a CAD $7 million debtor-in-possession (DIP) financing facility to a Canadian manufacturer of fresh, ready-made meal solutions, as the company undertakes a court-supervised restructuring under the Companies’ Creditors Arrangement Act (CCAA).
The company supplies entrees, salads, sides and meal kits to grocery chains and food service clients across Canada through a combination of private-label and branded offerings. Several years of rapidly rising input costs, combined with long-term, inflexible supply contracts, put sustained pressure on the business, leading the company to file for CCAA protection and pursue an organized, court-supervised restructuring. Garrington’s facility, secured by a court-mandated senior lien on substantially all of the company’s assets and subject to oversight from a court-appointed monitor, is providing working capital to support continued operations while the company completes a formal, court-supervised sale process.
The facility is secured by the company’s accounts receivable, food inventory and equipment. Garrington structured a 75% advance rate against accounts receivable and a $1 million advance cap against food inventory, reflecting an appropriate structure delivered under significant timing constraints with sufficient flexibility to ensure that the company had access to sufficient capital through-out the restructuring process.
“DIP financing exists to buy a business time, when time is the one thing that courts, creditors and employees all need,” said Erica Axani, EVP & Chief Risk Officer at Garrington Capital. “This company had a real business behind the balance sheet problem: quality receivables, disciplined inventory, and a credible path forward. Our job was to structure financing that let operations continue while that path is worked out.”
About Garrington Capital™
Garrington Capital™, one of the premier commercial finance lenders in North America, with over 50 employees across North America, has completed over USD $5 Billion in total financings since inception. Garrington Capital has a wide reach with centralized offices in the USA and Canada, as well as a physical sales presence in over 20 jurisdictions through its loan origination subsidiary Liquid Capital Corp. and Baker Garrington Capital Corp. Garrington Capital is committed to supporting small and medium-sized enterprises across North America by providing customized financing solutions. Garrington Capital’s non-bank funding options are designed to address unique business challenges and help clients overcome obstacles to secure the capital they need. By offering flexible terms and a transparent approval process, Garrington Capital empowers borrowers by ensuring they can focus on driving growth and achieve their goals. With a dedication to personalized service and deep industry expertise, Garrington Capital strives to be a reliable partner that fosters long-term success.
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