August 22, 2020
To Merchants under Agreements with Par Funding:
On July 27, 2020, the United States District Court for the Southern District of Florida appointed Ryan K. Stumphauzer as Receiver for Complete Business Solutions Group, Inc., doing business as Par Funding (“Par Funding”) and several other entities (collectively the “Receivership Estate”). More information about these entities is available through this link. The Receiver has taken custody of all assets and records and is working to evaluate and maximize assets for investors, creditors, employees, and parties who have an interest in the Receivership Estate.
The Receiver has established a website that contains information about the receivership, which is available at parfundingreceivership.com. This website may provide answers to some of your questions concerning the Receivership and how it affects your Agreement with Par Funding or the merchant cash advance (“MCA”) provided by Par Funding.
Consistent with his duties and responsibilities under the Amended Receivership Order (which is available through this link), the Receiver has been working to preserve and maintain the Receivership Estate. The Receiver has retained Development Specialists, Inc., (“DSI”) a management consulting and advisory firm, to help evaluate the ongoing operations of Par Funding and the other entities included within the Receivership Estate.
Please be aware that your agreement with Par Funding and the MCA funded by Par Funding are assets of the Receivership Estate. The Receiver is required to collect and reduce to money the Receivership Estate’s assets for the benefit of investors and other creditors. This duty requires the Receiver to take all action, as he deems lawful and appropriate, to collect the full amount owed under the MCA.
To this end, the appointment of the Receiver does not diminish, impair or otherwise lessen the Merchant’s obligations to Par Funding under the Agreement, and the Receiver is currently evaluating the appropriate course of action with respect to collecting on and enforcing these agreements against the Merchants. In particular, the Merchant continues to be required to remit to Par Funding payment of the MCA in the amount and in the manner provided for in its Agreement with Par Funding. If an MCA is not timely paid or another obligation under the Agreement is not timely performed, the Receiver has the right to commence a lawsuit on behalf of Par Funding to enforce the Agreement and payment of the MCA.
In sum, the Merchant continues to be obligated to pay Par Funding the full amount owed under the MCA. Failure to remit payment in a timely manner may result in the Receiver bringing a lawsuit on behalf of Par Funding against the Merchant to enforce payment.
Rest assured that payments made by the Merchant are fully credited to its account. If the Merchant has questions regarding the ability to satisfy its obligations under the Agreement, the Receiver and its consultants are prepared to discuss this with you.
We expect to provide new contact information from communications from Merchants in the next several days. In the meanwhile, however, please direct all questions and other communications regarding your Agreement to [email protected].
Yours Very Truly,
Ryan K. Stumphauzer, Esq.
(A PDF copy of this letter is available at the following link)