The solution worked because it paired a liability reset with purpose-specific working capital rather than relying on one more layer of expensive short-term borrowing.

WorkedDid not

Liability structure

Article 9 sale freed assets from junior liabilities

MCA liabilities added pressure

Balance sheet

Clean balance sheet under JMP Industries

Legacy obligations remained burdensome

Working capital

$500,000 targeted to copper and production

Only two weeks of copper remained

Contract timing

Operations continued and contracts were delivered

Expected Q4 2023 cash arrived in April 2024

Second Wind Consultants implemented the Article 9 sale through a note-purchase from Gulf Coast Bank.² The transaction transferred assets free of junior liabilities and closed in February 2024, creating a clean new balance sheet under JMP Industries.² This addressed the structural problem rather than treating the delayed contract as a temporary inconvenience.

Breakout Capital then advanced $500,000 in working capital specifically for copper procurement and production continuity.² The financing freed the company from about $5.5 million of legacy liabilities and enabled continued operations and delivery on government contracts.² The combination mattered: the balance-sheet reset reduced inherited pressure, while the targeted advance supplied the material needed to keep work moving.

Used Article 9 restructuring and secured finance to escape default and continue operations