Jake P. Noch Family Office, LLC.
Court-Approved Structured Credit Facilities for Third-Party Issuers
Jake P. Noch Family Office, LLC provides highly specialized, court-supervised structured credit facilities under Section 3(a)(10) of the Securities Act of 1933, as amended, that are designed to protect and enhance value for issuers and their shareholders while resolving complex financial obligations in a fair, fully compliant, and non-predatory manner. Our approach represents a fundamental departure from conventional distressed lending, toxic financing, and predatory "death spiral" structures that have plagued small-cap and mid-cap issuers for decades
At its core, our structured credit platform is built on a simple but powerful principle: capital providers and issuers can achieve mutually beneficial outcomes when economic incentives are properly aligned, regulatory frameworks are rigorously observed, and court oversight ensures fairness to all stakeholders, including existing shareholders who are too often the forgotten victims of emergency financings. Critically, our facilities are structured so that Jake P. Noch Family Office never provides a single dollar directly to the issuer itself—instead, we pay legitimate third-party claims, invoices, and obligations directly to the creditors, vendors, and claimants on behalf of the issuer. This direct payment structure is essential to maintaining compliance with the Section 3(a)(10) exemption, which requires that securities be issued in exchange for bona fide outstanding claims rather than for cash raised for general corporate purposes
This introductory overview provides a comprehensive explanation of how these facilities work, why the direct payment mechanism is critical to legal compliance and stakeholder protection, and how Jake P. Noch Family Office has positioned itself as a trusted partner to companies ranging from those that no traditional lender will touch to the largest multinational corporations seeking innovative, compliance-first capital solutions
Our Mission: Protecting Value While Resolving Claims
The structured credit marketplace has long been characterized by information asymmetry, predatory terms, and structures that systematically transfer value from shareholders to lenders at moments of maximum vulnerability. Traditional distressed lenders, PIPE funds, and toxic note investors have built entire business models around exploiting issuer weakness, imposing punitive interest rates, embedding conversion ratchets and anti-dilution provisions that guarantee dilution spirals, and ultimately profiting not from the success of their portfolio companies but from their continued distress.​
Jake P. Noch Family Office was founded on the conviction that this paradigm is both economically inefficient and fundamentally unfair. By leveraging the Section 3(a)(10) exemption framework—which requires judicial approval of the fairness of securities issued in exchange for existing claims—and by structuring our facilities so that every dollar advanced goes directly to resolve bona fide third-party obligations rather than to the issuer's general treasury, we have created a capital platform that provides genuine claim resolution while protecting existing shareholders from the value destruction that typically accompanies distressed financings.​
Our facilities are not traditional financing transactions where an issuer receives cash and then decides how to spend it. Instead, they are comprehensive claim resolution and liability management solutions where the issuer identifies specific outstanding obligations—vendor invoices, legal settlements, acquisition payments, professional fees, lease obligations, and similar third-party claims—and Jake P. Noch Family Office pays those obligations directly to the third-party creditors or claimants, with the issuer subsequently reimbursing the family office through court-approved securities issuances.​
This structure serves multiple critical functions. First, it ensures perfect compliance with Section 3(a)(10), which exempts from registration securities issued in exchange for claims or property interests, not securities issued for cash. Second, it provides complete transparency regarding the use of facility proceeds, eliminating any concern that funds might be diverted to inappropriate purposes. Third, it creates an objective, verifiable record of every dollar advanced and every claim satisfied, which strengthens the fairness showing required for court approval and protects all stakeholders from subsequent disputes.​
These facilities are designed by Managing Director Jake P. Noch and implemented in collaboration with experienced securities counsel, financial advisors, and the courts to ensure that every stakeholder benefits from transparent, regulated processes that prioritize long-term value creation over short-term extraction.
Understanding Section 3(a)(10): The Foundation of Our Approach
Section 3(a)(10) of the Securities Act of 1933 provides an exemption from federal securities registration requirements for any security that is issued in exchange for one or more bona fide outstanding securities, claims, or property interests, where the terms and conditions of the issuance and exchange are approved by a court or authorized governmental entity after a hearing upon the fairness of such terms and conditions at which all persons to whom it is proposed to issue securities in such exchange have the right to appear.​
This statutory exemption, while straightforward in its text, has been the subject of extensive SEC staff guidance and judicial interpretation over the past nine decades. The Securities and Exchange Commission has consistently emphasized that Section 3(a)(10) is designed to protect investors through the substitution of court or governmental oversight for the disclosure requirements of a registered offering, and that the exemption should only be available where genuine judicial scrutiny has occurred and where the securities being issued represent fair consideration for the claims or property interests being exchanged.​
A critical element of Section 3(a)(10) compliance is that the securities must be issued in exchange for bona fide pre-existing claims, not for newly raised capital. This requirement means that traditional financing structures—where an issuer receives cash from an investor and issues securities as consideration for that cash infusion—do not qualify for the Section 3(a)(10) exemption. Instead, the exemption is available only when the securities are issued to satisfy existing obligations, such as outstanding debts, accounts payable, legal judgments, contractual claims, or other liabilities that existed prior to the exchange transaction.​
Jake P. Noch Family Office has invested enormous resources in understanding the precise contours of Section 3(a)(10) practice, including the procedural requirements for valid fairness hearings, the evidentiary standards that courts apply when evaluating proposed exchanges, and the substantive economic analysis necessary to demonstrate that proposed terms are fair to all affected security holders. Most importantly, we have structured our facilities to ensure perfect compliance with the requirement that securities be issued only in exchange for pre-existing claims by implementing a direct payment mechanism where we pay third-party creditors and claimants rather than providing cash to the issuer.
This direct payment structure transforms the legal and economic character of the transaction. Rather than the issuer receiving cash from the family office and then using that cash to pay claims (which would be a traditional financing followed by a use of proceeds), the family office steps directly into the issuer's shoes and satisfies the issuer's pre-existing obligations to third parties using the family office's own funds. The issuer's obligation to the family office arises not from receipt of cash but from the satisfaction of its liabilities, and the securities issued to the family office represent consideration for the extinguishment of those third-party claims.​
This structuring approach allows our facilities to qualify for Section 3(a)(10) while still providing the practical liquidity benefits that issuers desperately need—the difference is that the liquidity takes the form of claim resolution rather than cash receipts, which both satisfies the statutory requirements and provides better protection for all stakeholders.​
The Economic Framework: Fixed Dollar Reimbursement With No Interest
The cornerstone of our structured facilities is a fixed dollar reimbursement mechanism that fundamentally distinguishes our capital from conventional debt, convertible notes, or equity lines of credit. When Jake P. Noch Family Office agrees to provide a structured credit facility to an issuer, we are committing our balance sheet to pay qualified third-party obligations directly to those third parties on behalf of the issuer—vendor invoices, legal settlements, acquisition payments, professional service fees, lease obligations, insurance claims, and similar expenditures—up to a predetermined credit limit.​
It is essential to understand that the issuer never receives money from the family office. The issuer identifies specific outstanding obligations that need to be satisfied, provides appropriate documentation and verification to the family office, and upon approval, the family office wires funds directly to the third-party creditor, vendor, claimant, or service provider. The issuer's liability to that third party is thereby extinguished, and a new reimbursement obligation to the family office is created in an amount equal to the funds advanced.
In exchange for advancing these funds and bearing the liquidity risk associated with their eventual repayment, the family office is entitled to reimbursement equal to the exact dollar amount paid to third parties on the issuer's behalf, plus a negotiated profit margin that typically ranges from ten percent to thirty percent of the principal amount advanced. Critically, this reimbursement obligation is structured as a fixed dollar amount realized through the monetization of securities, not a fixed number of shares, which means that the issuer's obligation to the family office remains constant in dollar terms regardless of subsequent changes in the trading price of the issuer's securities.
This structural choice has profound implications for both risk allocation and shareholder protection. If the issuer's stock price appreciates after the facility is established and claims are paid, the family office will receive fewer shares to satisfy the fixed dollar reimbursement obligation, meaning that the issuer and its existing shareholders benefit from reduced dilution when their equity performs well. Conversely, if the issuer's stock price declines, more shares will be issued to satisfy the same fixed dollar obligation, but the total economic claim against the issuer does not increase simply because the stock price has fallen.
This stands in stark contrast to traditional convertible debt structures, variable rate convertible notes, and equity lines of credit, which typically include conversion features, anti-dilution ratchets, and lookback provisions specifically designed to increase the lender's claim when the stock price declines. Those structures profit from issuer distress and create powerful incentives for lenders to exacerbate downward price pressure through short selling, negative publicity, and other tactics designed to maximize the number of shares they receive upon conversion.​
Our fixed dollar reimbursement approach eliminates these perverse incentives entirely. Because the family office's economic return is capped at the original dollar amount advanced to third parties plus the agreed profit margin, we have no economic interest in driving the stock price lower and every incentive to support issuer success, operational improvements, and long-term value creation that will allow us to realize our fixed reimbursement more quickly and with less dilution to all shareholders.
Furthermore, all of our structured facilities are non-interest bearing. The profit margin agreed upon at the inception of the facility represents the total and exclusive economic return to the family office, and that margin does not accrue, compound, or increase over time regardless of how long it takes to complete the reimbursement process. While profit margins in the ten to thirty percent range may initially appear substantial, it is essential to understand that these represent total returns over what can be multi-year reimbursement periods during which the family office's capital is fully at risk and generating no interim cash flow.
A twenty percent profit margin realized over three years, for example, represents an annualized return of less than seven percent, and during that entire three-year period the family office receives no interest payments, no interim distributions, and no ability to accelerate or demand early repayment. The family office's only path to realizing its return is through the patient, disciplined monetization of issuer securities in the open market, absorbing all execution risk, market impact, liquidity constraints, and trading volatility that occurs during the reimbursement period.
This economic structure ensures that Jake P. Noch Family Office is genuinely aligned with long-term issuer success and shareholder value creation, not short-term extraction or value transfer.
How Our Facilities Operate: From Claim Identification to Third-Party Payment
The operational mechanics of our structured credit facilities are designed to provide maximum certainty regarding use of funds while maintaining the robust oversight and fairness protections required by Section 3(a)(10) and applicable state law​
Initial Structuring and Credit Limit Determination
Every facility begins with a comprehensive analysis of the issuer's outstanding liabilities, projected claim resolution needs, trading liquidity, and shareholder base. Working closely with issuer management, their legal counsel, and financial advisors, Jake P. Noch Family Office develops a detailed understanding of the specific categories of third-party claims and obligations the facility is designed to address.
These claims typically fall into several broad categories: (1) legacy accounts payable to vendors and suppliers; (2) professional service fees owed to attorneys, accountants, consultants, and advisors; (3) legal settlements and judgments; (4) lease and real estate obligations; (5) acquisition-related payments to selling shareholders or companies; (6) tax liabilities and governmental obligations; (7) insurance claims and workers compensation obligations; and (8) contractual claims arising from business disputes or breached agreements.​
Based on a comprehensive inventory of outstanding obligations in each category, we establish a credit limit that represents the maximum dollar amount the family office will advance directly to third-party creditors and claimants on behalf of the issuer. This credit limit is not arbitrary—it is calibrated to the issuer's expected trading volume, market capitalization, and the realistic capacity of the public markets to absorb the securities that will ultimately be issued to reimburse the family office without causing undue market disruption or dilution spirals.​
The credit limit determination process involves sophisticated quantitative modeling of trading patterns, liquidity metrics, and execution scenarios to ensure that the proposed facility is economically feasible for the family office while remaining fair to the issuer and its existing shareholders. This painstaking analytical work is a critical component of the fairness showing that will ultimately be presented to the court for approval.​
Court Approval and Fairness Hearing Process
Once the economic terms of the facility have been negotiated and documented, including the universe of third-party claims eligible for payment and the reimbursement mechanics, the issuer—with the support of the family office—initiates the court approval process required by Section 3(a)(10). This process typically involves filing a petition or motion with a court of competent jurisdiction seeking approval of the proposed exchange of pre-existing claims for securities on the grounds that the terms are fair to all affected parties.
The petition must clearly describe the mechanism by which the facility will operate: that Jake P. Noch Family Office will pay specific categories of third-party obligations directly to those third parties upon submission and verification by the issuer, that the issuer's pre-existing liabilities to those third parties will be extinguished by such payment, and that the issuer will reimburse the family office through securities issuances approved as fair consideration for the claim resolution services provided.​
The court approval process is far more than a procedural formality. To satisfy the requirements of Section 3(a)(10) and ensure that the resulting securities are indeed exempt from registration, the court must conduct a genuine fairness hearing at which all persons to whom securities will be issued have the right to appear and be heard. This means that existing shareholders, creditors, and other stakeholders must receive adequate notice of the proposed transaction and an opportunity to object or present evidence regarding fairness.​
Jake P. Noch Family Office works extensively with the issuer and its counsel to prepare comprehensive evidentiary submissions that demonstrate the fairness of the proposed facility and the appropriateness of the direct payment mechanism. These submissions typically include: (1) detailed schedules of outstanding third-party claims and obligations; (2) evidence of the bona fide nature of those claims; (3) financial analyses showing the issuer's inability to satisfy claims through normal operations or traditional financing; (4) expert testimony regarding market terms for similar claim resolution transactions; (5) projections demonstrating how resolution of the claims will preserve going-concern value and benefit shareholders; and (6) extensive disclosure regarding the family office's economic interests and the mechanics of the direct payment and reimbursement process.​
The court's fairness determination must be substantive, not merely pro forma, and must be based on findings supported by the evidentiary record. The court will typically examine whether the claims being satisfied are legitimate and properly documented, whether the profit margin being earned by the family office represents reasonable compensation for the capital and risk being provided, and whether the overall structure protects the interests of existing shareholders who will experience dilution as reimbursement securities are issued.
Once the court enters an order approving the fairness of the transaction and specifically authorizing the direct payment mechanism and corresponding securities issuances, the Section 3(a)(10) exemption becomes available, and the facility can be implemented without the time, expense, and disclosure obligations associated with a registered public offering.​
Claim Submission and Verification Process
With court approval obtained, the operational phase of the facility begins. The issuer's management team—typically the CFO, controller, or designated financial officer—begins identifying specific third-party obligations that fall within the scope of the approved facility and that the issuer wishes to have the family office satisfy.
For each obligation, the issuer must provide comprehensive documentation to the family office for verification and approval. This documentation typically includes: (1) the original invoice, contract, settlement agreement, judgment, or other source document creating the obligation; (2) evidence that the obligation is legitimate and has not been previously paid or satisfied; (3) current contact and payment information for the third-party creditor or claimant; (4) confirmation that payment of the obligation will fully extinguish the issuer's liability; and (5) any subordination agreements, lien releases, or other documentation required to ensure clean satisfaction of the claim.
Jake P. Noch Family Office conducts rigorous due diligence on every submitted claim to verify its legitimacy and ensure it falls within the categories approved by the court. This verification process protects both the family office and the issuer by ensuring that facility proceeds are used only for their intended purposes, that all obligations being satisfied are genuine and properly documented, and that the transaction record can withstand subsequent scrutiny from auditors, regulators, and other stakeholders.
We also conduct anti-fraud and anti-money laundering reviews to ensure that none of the third-party payees are on sanctions lists, that there are no indicia of fraudulent or fictitious invoicing, and that payment instructions have been properly verified to avoid wire fraud or payment diversion schemes. This compliance infrastructure provides critical protection for all parties and maintains the integrity of the facility.​
Direct Payment to Third-Party Creditors and Claimants
Once an obligation has been verified and approved for payment, Jake P. Noch Family Office initiates a direct wire transfer or other payment to the third-party creditor, vendor, claimant, or service provider using the family office's own funds and balance sheet capacity. The issuer never receives these funds—they flow directly from the family office's accounts to the third party's accounts, completely bypassing the issuer's treasury.
This direct payment structure is the defining feature of our facilities and the critical element that ensures Section 3(a)(10) compliance. By paying third parties directly, we ensure that the securities subsequently issued to the family office are being issued in exchange for the extinguishment of bona fide pre-existing claims rather than for cash provided to the issuer.​
Upon payment, the family office obtains documentation from the third party confirming receipt of funds and acknowledging full satisfaction of the underlying obligation. We also obtain from the issuer a release or acknowledgment confirming that the issuer's liability to the third party has been extinguished by the family office's payment and that the issuer now owes a reimbursement obligation to the family office in an amount equal to the funds advanced.​
This comprehensive documentation creates a clear chain of evidence showing: (1) the pre-existing obligation of the issuer to the third party; (2) the payment by the family office directly to the third party; (3) the satisfaction of the issuer's obligation; and (4) the creation of a new reimbursement obligation from the issuer to the family office. This documentation is essential for securities law compliance, financial statement accuracy, and protection of all parties' interests.​
Critically, the family office bears complete liquidity and capital risk from the moment funds are wired to the third party. There is no guarantee regarding when or how quickly reimbursement will occur, and during the reimbursement period—which can extend over months or years—the family office's capital is fully deployed with no interim cash flow and no ability to demand accelerated repayment.
Reimbursement Through Securities Issuance and Monetization
As the family office pays third-party obligations on the issuer's behalf, a running ledger is maintained documenting the total dollar amount advanced, organized by payment date, payee, and purpose. This ledger forms the basis for calculating the reimbursement obligation, which equals the total amount paid to third parties plus the agreed profit margin percentage.​
The issuer's obligation is to cause securities to be issued to the family office such that, when those securities are sold in the public market, the family office realizes net proceeds (after commissions, fees, and execution costs) equal to the total reimbursement amount. Because the reimbursement is defined as a fixed dollar amount realized rather than a fixed number of shares, the actual quantity of shares issued will vary depending on the trading price of the issuer's securities during the monetization period.​
The timing and mechanics of securities issuance vary depending on the specific structure approved by the court and negotiated between the parties. In some facilities, securities are issued on a periodic basis (monthly or quarterly) as claims are paid; in others, securities are issued in larger tranches at predetermined intervals or upon achieving specified payment milestones; and in still others, securities are issued on an as-needed basis driven by the family office's monetization capacity and market conditions. Regardless of the issuance schedule, the fundamental principle remains constant: the family office is entitled to receive, over time, whatever number of shares is necessary to realize the fixed dollar reimbursement amount through market sales.
This reimbursement structure requires the family office to serve as a sophisticated market participant, developing and executing carefully planned monetization strategies that balance the need to realize proceeds against the imperative to minimize market impact and avoid depressing the stock price. The family office bears the risk that adverse market conditions, low trading volumes, illiquidity, or negative sentiment will delay reimbursement or require the monetization of more shares than originally anticipated to achieve the fixed dollar recovery.​
During the monetization period, which can extend over years, the family office receives no interest, no interim payments, and no compensation for the time value of money. The only return is the profit margin agreed at inception, which is earned solely through the patient, disciplined execution of the liquidation strategy.​
Why Direct Payment Is Essential: Legal Compliance and Stakeholder Protection
The requirement that Jake P. Noch Family Office pay third-party creditors and claimants directly rather than providing cash to the issuer is not merely a technical detail—it is the structural foundation that enables our facilities to qualify for the Section 3(a)(10) exemption and provides critical protection for all stakeholders.​
Section 3(a)(10) Statutory Compliance
As discussed previously, Section 3(a)(10) exempts from registration securities issued "in exchange for one or more bona fide outstanding securities, claims or property interests." The statute does not exempt securities issued for cash or for newly provided capital—it exempts only securities issued to satisfy pre-existing obligations.​
If Jake P. Noch Family Office were to provide cash to the issuer and then receive securities in exchange, that transaction would be a straightforward capital raise indistinguishable from any other private placement or financing transaction, and it would not qualify for Section 3(a)(10). The fact that the issuer might subsequently use the cash proceeds to pay claims would not change the legal characterization—the securities would have been issued for cash, not for claims.​
By structuring the transaction so that the family office pays claims directly to third parties, we ensure that the issuer's pre-existing obligations are being directly exchanged for securities. The securities are not being issued for cash received by the issuer; they are being issued as consideration for the extinguishment of liabilities. This structural distinction is what brings the transaction within the scope of Section 3(a)(10) and makes the exemption available.​
Transparency and Use of Proceeds Verification
The direct payment mechanism also provides complete transparency regarding the use of facility proceeds, which strengthens both the fairness showing required for court approval and the ongoing accountability to shareholders and regulators.​
When capital is provided to an issuer in the form of cash, there is always risk that the funds will be diverted to purposes other than those represented to the court, investors, or regulators. Management might use funds for excessive compensation, related-party transactions, or speculative ventures rather than for the claim resolution purposes that justified the financing. Tracking use of proceeds after cash is transferred to the issuer's control can be difficult, and misuse may not be discovered until long after the funds are gone.​
Our direct payment structure eliminates this risk entirely. Because every dollar advanced by the family office flows directly to a specific third-party creditor for a specific documented obligation, there is no possibility of diversion or misuse. The family office maintains complete records of every payment—the payee, the amount, the underlying invoice or claim, and the date of payment—creating a comprehensive audit trail that demonstrates exactly how facility proceeds were deployed.​
This transparency benefits multiple stakeholders. Courts approving Section 3(a)(10) transactions can be confident that the facility will operate as represented and that securities will be issued only in exchange for genuine claim resolution, not for cash that might be misused. Existing shareholders can verify that the dilution they are experiencing is truly being used to resolve legitimate liabilities and create value, not to enrich insiders or fund questionable activities. Auditors and regulators can readily verify compliance with securities laws and proper accounting treatment because the payment records provide objective, third-party verification of every transaction.​
Protection Against Fraudulent or Fictitious Claims
Another critical benefit of the direct payment mechanism is protection against fraudulent or fictitious invoicing schemes that can plague traditional financings.​
When an issuer receives cash from a financing and then purports to use those funds to pay claims, there is risk that some of those claims are not legitimate—they may be invoices from related parties, payments to accommodate fraudulent schemes, or fabricated obligations designed to justify extracting capital from the company. Sophisticated financial fraud often operates by creating the appearance of legitimate business activity through fake invoices and circular transactions.​
Our requirement that every obligation be verified by the family office before payment, and that payment be made directly to the third-party claimant, dramatically reduces the risk of this type of fraud. The family office conducts independent due diligence on the legitimacy of each claim, verifies the identity and independence of each payee, and confirms that payment instructions are legitimate before any funds are transferred.​
This verification process would be impossible if we simply provided cash to the issuer and relied on the issuer's representations regarding how the funds were used. By maintaining control over the payment process and making direct disbursements to verified third parties, we protect both the family office's capital and the integrity of the transaction.​
Accounting and Financial Statement Accuracy
The direct payment structure also ensures accurate accounting treatment and transparent financial statement presentation, which benefits the issuer, its auditors, and the investing public.​
Under generally accepted accounting principles (GAAP), when the family office pays a third-party obligation on the issuer's behalf, the issuer records the satisfaction of the underlying liability (a credit to accounts payable, accrued liabilities, or other liability accounts) and the creation of a new obligation to the family office (typically recorded as a derivative liability or other financing obligation depending on the specific terms).​
Because actual third-party claims are being satisfied through verified payments, the accounting impact is clear and auditable: specific liabilities on the balance sheet are being reduced through the facility, and the financial statement notes can provide transparent disclosure regarding the source and terms of the claim resolution arrangement.​
If instead the issuer received cash from the family office and then made its own payments to creditors, the accounting would be far more complex and less transparent, with potential for confusion regarding whether the facility represents a debt financing, an equity financing, or some hybrid structure. The direct payment mechanism eliminates this ambiguity and ensures that the economic substance of the transaction is clearly reflected in the financial statements.​
Regulatory Compliance and Best Practices: Building Structures That Withstand Scrutiny
Jake P. Noch Family Office's commitment to regulatory compliance and adherence to best practices extends to every aspect of our direct payment mechanism and reimbursement structure.​
Securities Law Compliance Framework
Every structured facility is designed from inception to comply with all applicable federal securities laws, including the registration and exemption provisions of the Securities Act of 1933, the periodic reporting and antifraud provisions of the Securities Exchange Act of 1934, and the rules and regulations promulgated by the Securities and Exchange Commission under both statutes.​
Our direct payment mechanism is specifically structured to satisfy the statutory requirements of Section 3(a)(10), including the requirement that securities be issued in exchange for bona fide outstanding claims. We maintain comprehensive documentation demonstrating that every claim paid was a legitimate pre-existing obligation of the issuer, that payment was made directly to the third-party creditor or claimant, and that the securities issued to the family office represent fair consideration for the claim resolution services provided.
Beyond the exemption itself, we ensure that all securities issued under our facilities are either freely tradable or subject to appropriate transfer restrictions and legends that comply with applicable resale limitations. When restricted securities are issued, we work with the issuer and its transfer agent to establish appropriate procedures for removing legends and permitting resales in compliance with Rule 144 or other applicable exemptions.​
Our facilities are also structured with careful attention to the antifraud provisions of the federal securities laws, particularly Rule 10b-5 under the Exchange Act, which prohibits manipulative or deceptive conduct in connection with the purchase or sale of securities. Because our fixed dollar reimbursement structure and lack of anti-dilution protection eliminates the perverse incentives that characterize many structured financings, and because our direct payment mechanism ensures complete transparency regarding use of proceeds, our facilities are inherently less likely to raise antifraud concerns than toxic note structures where the lender profits from driving down the stock price.​
State Securities Law and Court Procedure Compliance
In addition to federal securities law compliance, our facilities must satisfy the requirements of applicable state securities laws (often referred to as "blue sky" laws) and the procedural rules of the courts from which Section 3(a)(10) approval is sought.​
Each state has its own securities registration requirements and exemption provisions, and while Section 3(a)(10) of the federal Securities Act exempts securities from federal registration, it does not automatically exempt them from state registration. Accordingly, our structuring process includes a comprehensive fifty-state blue sky analysis to determine what additional state-level registrations, exemptions, or notice filings may be required, and to ensure that all such requirements are satisfied before securities are issued or offered for sale.​
The court approval process itself must comply with the civil procedure rules of the jurisdiction in which approval is sought. This includes requirements for proper service of process, adequate notice to interested parties (including both the third-party creditors whose claims will be satisfied and the existing shareholders who will experience dilution), opportunity for hearing and objection, and entry of a final order that satisfies the statutory requirements for a Section 3(a)(10) fairness determination.​
Jake P. Noch Family Office works exclusively with experienced local counsel who are intimately familiar with the procedural requirements of the relevant courts and who can navigate the approval process efficiently while ensuring that all statutory and regulatory mandates are met, including specific findings regarding the legitimacy of the claims being satisfied and the fairness of the direct payment and reimbursement mechanism.​
FINRA, Exchange, and Transfer Agent Compliance
Our facilities also require careful coordination with the Financial Industry Regulatory Authority (FINRA), the applicable stock exchange or quotation system (such as the NYSE, NASDAQ, or OTC Markets), and the issuer's transfer agent to ensure that all market intermediaries understand the structure—particularly the direct payment mechanism—and can process transactions in compliance with their own rules and procedures.​
FINRA rules govern the conduct of broker-dealers and impose specific requirements regarding the handling of unregistered securities, the reporting of trades, and the prevention of manipulative trading practices. When the family office monetizes securities received under a facility, those transactions must be executed through registered broker-dealers in compliance with all applicable FINRA rules, and appropriate documentation must be provided to demonstrate that the securities are indeed exempt from registration under Section 3(a)(10) and eligible for public resale.​
The fact that securities were issued in exchange for bona fide claim resolution services rather than for cash or in a traditional financing transaction is often a point of inquiry for broker-dealers' compliance departments, and our comprehensive documentation package—including court orders, payment records, and legal opinions—is designed to provide the evidence necessary for broker-dealers to satisfy their own due diligence obligations.​
Similarly, the listing rules of national securities exchanges and the eligibility standards of OTC Markets impose requirements regarding the circumstances under which securities may be publicly traded, the disclosure obligations of issuers, and the procedures for adding shares to the public float. Our facilities are structured to ensure that all securities issued can be admitted to trading without triggering listing violations, dilution concerns, or regulatory issues for the issuer, and we provide comprehensive disclosure to market operators regarding the nature of the facility and the direct payment mechanism.​
Finally, transfer agents play a critical role in the mechanics of securities issuance and legend removal, and must be satisfied that appropriate documentation exists to support the issuance of shares under a Section 3(a)(10) exemption and the subsequent removal of restrictive legends. Jake P. Noch Family Office maintains close working relationships with leading transfer agents and provides comprehensive legal opinions, court orders, claim documentation, and payment records to ensure smooth processing of all share issuances and transfers.​
How We Differ From Predatory Lenders and "Death Spiral" Structures
The direct payment mechanism and fixed dollar reimbursement structure of Jake P. Noch Family Office's facilities create fundamental differences from predatory lending practices and toxic note structures that systematically destroy shareholder value.​
The Problem: Traditional Financings With Cash Disbursement to Issuers
Traditional toxic financing structures typically provide cash directly to the issuer in exchange for convertible promissory notes with variable conversion prices that include anti-dilution protection, price reset mechanisms, and lookback provisions. The issuer receives the cash and has discretion over how it is used, with minimal accountability to the lender regarding actual deployment of the funds.​
This structure creates multiple problems. First, there is no assurance that the funds will be used productively or for the benefit of shareholders—management may divert cash to related-party transactions, excessive compensation, or ill-advised investments. Second, the variable conversion price mechanisms embedded in most toxic notes create powerful incentives for lenders to drive the stock price down to maximize their share count upon conversion. Third, the lack of transparency regarding use of proceeds makes it difficult for shareholders and regulators to evaluate whether the financing is actually benefiting the company or simply enriching insiders and lenders.​
Our Solution: Direct Payment With Complete Transparency
Jake P. Noch Family Office's facilities eliminate all of these problems through the direct payment mechanism. The issuer never receives cash and therefore has no opportunity to misuse or divert funds. Every dollar advanced by the family office goes directly to a specific third-party creditor to satisfy a specific documented obligation, creating complete transparency and ensuring that the dilution shareholders experience is directly resulting in tangible value creation through liability reduction.​
This structure provides powerful protection for shareholders. They can review the court-approved categories of claims eligible for payment and the verification procedures the family office employs, and they can be confident that the financing is being used exactly as represented—to resolve legitimate liabilities that are a drag on the company's financial condition and operational flexibility.​
The direct payment mechanism also eliminates any question regarding whether the transaction is a disguised capital raise that should require registration or shareholder approval. Because no cash flows to the issuer, and because every payment directly extinguishes a pre-existing third-party liability, the transaction is clearly and unambiguously a claim resolution arrangement that qualifies for Section 3(a)(10), not a financing that should be subject to the disclosure requirements of a registered offering.​
Fixed Dollar Reimbursement With No Anti-Dilution
As discussed extensively above, our fixed dollar reimbursement structure eliminates the perverse incentives embedded in variable conversion price notes. Because the family office's claim is capped at the dollar amount paid to third parties plus the agreed profit margin—with no anti-dilution adjustments, no price resets, and no lookback provisions—we have zero economic incentive to drive the stock price down and every incentive to support the issuer's success.​
The combination of direct payment transparency and fixed dollar reimbursement creates perfect alignment between the family office, the issuer, and existing shareholders: everyone benefits when the company uses the liability relief provided by the facility to improve operations, grow revenues, and drive the stock price higher, because higher prices mean less dilution and faster reimbursement completion.​
No Interest, No Compounding, No Penalty Rates
Our no-interest structure is particularly important in the context of the direct payment mechanism. Because the family office's capital is deployed to third parties rather than to the issuer, and because we bear complete liquidity risk during the monetization period with no ability to demand early repayment or impose penalty fees, the profit margin we earn represents pure compensation for capital at risk over extended timeframes.​
Unlike traditional lenders who provide cash to issuers and then charge compound interest that escalates the obligation month after month, our claim remains static: the dollar amount paid to third parties plus the fixed margin, with no growth regardless of time or circumstances. This means that even if reimbursement takes far longer than originally projected, the issuer's obligation does not spiral out of control, and shareholders are not facing an ever-increasing dilution burden.​
Serving the Entire Spectrum: From Distressed Situations to Blue-Chip Corporations
Jake P. Noch Family Office's direct payment structure is designed to work effectively for issuers across the entire spectrum of corporate size, credit quality, and operational circumstances.​
Working With Issuers No One Else Will Serve
A significant portion of our practice focuses on companies facing severe financial distress, overwhelming legacy liabilities, or operational challenges that have rendered them unable to access any form of traditional financing. These companies typically have large pools of outstanding payables, unpaid professional fees, legal judgments, and other claims that are preventing them from conducting normal business operations and attracting new investors or customers.​
For these issuers, our direct payment structure provides a comprehensive solution to their liability problems. Rather than having to negotiate individual settlements with dozens or hundreds of creditors—a process that can take years and result in expensive litigation—the issuer can work with the family office to systematically resolve all outstanding claims through court-approved direct payments.​
Creditors benefit tremendously from this structure because they receive full payment immediately rather than having to wait for the issuer to generate cash flow or pursue lengthy collection efforts. The family office's willingness to pay claims in full, in cash, on demand, transforms the creditors' position from uncertain and illiquid claims against a distressed company into immediately realized cash payments.
The issuer benefits by achieving a clean balance sheet, eliminating the distraction and operational drag of managing hundreds of creditor relationships, and positioning itself for growth and value creation once the legacy liabilities have been cleared. Management can focus on running the business rather than managing creditor disputes, and the company can begin attracting new vendors, customers, and investors who previously avoided it due to its troubled financial condition.​
Jake P. Noch Family Office has particular expertise in custodianship proceedings and other court-supervised restructurings where our direct payment mechanism provides the capital necessary to satisfy legacy obligations while ensuring that every dollar advanced is used for legitimate claim resolution under judicial oversight.​
Serving Large, Creditworthy Corporations
The direct payment structure is equally valuable for large, creditworthy corporations facing specific liability management challenges where traditional financing is unavailable or inappropriate.​
For example, a large corporation contemplating a major acquisition may wish to provide the seller with immediate cash payment while deferring the balance sheet impact of the transaction over multiple quarters or years. The family office can pay the acquisition consideration directly to the selling shareholders, with the acquiring company reimbursing the family office over time through securities issuances that occur on a schedule aligned with earnings releases, strategic milestones, or other corporate priorities.​
Similarly, corporations with large pools of contingent liabilities—such as product liability claims, environmental remediation obligations, warranty claims, or legal settlements—may find that our direct payment mechanism provides a cleaner resolution than traditional insurance or reserve structures. As claims are presented and validated, the family office pays them directly to claimants, removing uncertainty from the corporation's financial projections while deferring the reimbursement impact over extended timeframes.​
Large corporations particularly appreciate the confidentiality advantages of our structure. Because the family office pays third parties directly rather than providing cash to the corporation, the arrangements can often be implemented without the extensive public disclosure that would be required for a traditional debt or equity financing. The corporation can resolve liabilities quietly and efficiently, without revealing strategic information to competitors or creating speculation among investors and analysts.​
Acquisitions and Strategic Transactions
One of the most powerful applications of our direct payment structure is in the context of acquisitions and strategic transactions. When a company wishes to acquire another business or significant assets but lacks the cash to close the transaction immediately, the family office can serve as the acquisition financing source by paying the purchase price directly to the selling party.​
This creates a win-win-win structure: the seller receives all-cash payment at closing, eliminating risk and providing immediate liquidity; the buyer completes the strategic acquisition without having to tap traditional financing sources or experience immediate earnings dilution; and the family office earns its profit margin by providing patient capital secured by court-approved reimbursement rights.​
The direct payment mechanism is particularly valuable in this context because it eliminates any question about use of proceeds—the funds flow directly to the seller as acquisition consideration, with no possibility of diversion. This makes the structure attractive to courts evaluating fairness, to selling parties concerned about payment certainty, and to existing shareholders of the acquiring company who want assurance that the dilution they will experience is directly resulting in acquisition of valuable assets or businesses.​
The Value Proposition for Shareholders: Protection Through Direct Payment
While the primary contractual relationship in our structured facilities is between Jake P. Noch Family Office and the issuer, the ultimate beneficiaries of the direct payment structure are the issuer's existing shareholders, who gain multiple layers of protection that are absent in traditional financings.​
Use of Proceeds Certainty and Accountability
The most fundamental shareholder protection provided by the direct payment mechanism is absolute certainty regarding use of facility proceeds. When shareholders experience dilution, they want to know that the capital being raised is being deployed productively for the benefit of the company—not diverted to management compensation, related-party transactions, or wasteful spending.​
With traditional financings where cash is provided to the issuer, shareholders have limited visibility into actual use of proceeds and limited recourse if funds are misused. Management might represent to the board and shareholders that financing proceeds will be used for working capital, product development, or strategic acquisitions, but then actually use the funds for less productive purposes once the cash is under their control.​
Our direct payment structure eliminates this risk entirely. Shareholders know with absolute certainty that every dollar of dilution they experience is directly resulting in resolution of a specific third-party claim that was verified by both the family office and the court. They can review the court-approved categories of eligible claims, they can see the payment records in the issuer's periodic reports, and they can verify that the liabilities on the balance sheet are actually declining as facility payments are made.​
This transparency and accountability is invaluable, particularly for shareholders of smaller companies where agency costs and potential for management self-dealing are significant concerns.​
Minimizing Dilution Through Fixed Obligations and Liability Reduction
The fixed dollar reimbursement mechanism ensures that the dilution shareholders will experience is capped and predictable. Because the family office's claim does not grow over time and is not subject to anti-dilution adjustments, shareholders can calculate with precision how much dilution will occur in various price scenarios.​
Moreover, because every dollar of dilution is being used to extinguish third-party liabilities that are currently weighing down the company's balance sheet and constraining its operations, the dilution is directly resulting in value creation. A cleaner balance sheet, reduced liability overhang, and improved relationship with vendors and creditors should—all else equal—result in higher equity valuations that offset some or all of the dilution impact.​
This contrasts sharply with toxic note financings where shareholders experience unlimited dilution driven by variable conversion prices, where the capital raised may or may not be used productively, and where the lender has economic incentives to drive the stock price down rather than supporting value creation.​
Court Oversight as Independent Validation
The Section 3(a)(10) fairness hearing process provides shareholders with independent judicial validation that the proposed facility, including the direct payment mechanism and reimbursement terms, is fair and in the best interests of the company.​
Shareholders who have concerns about the proposed facility have the right to appear at the fairness hearing, review the evidentiary submissions (including detailed schedules of claims to be paid), cross-examine witnesses, and object to court approval. This procedural protection ensures that shareholder voices are heard and that the court's fairness determination is based on a complete record that includes input from all affected parties.​
The court's approval provides powerful reassurance to shareholders that a disinterested judicial officer with no economic stake in the transaction has reviewed the claims being paid, the reimbursement terms being offered, and the overall structure, and has concluded that it represents fair consideration and will benefit shareholders by resolving liabilities and positioning the company for improved performance.​
The Due Diligence and Structuring Process: Ensuring Every Claim Is Legitimate
Every structured facility implemented by Jake P. Noch Family Office includes an extensive due diligence and verification process specifically focused on ensuring that every claim submitted for payment is legitimate, properly documented, and falls within court-approved categories.​
Financial and Liability Due Diligence
Our due diligence process begins with a comprehensive review of the issuer's liabilities as reflected in financial statements, accounts payable aging reports, legal pleadings, settlement agreements, judgment records, and other source documents. This review is designed to create a complete inventory of outstanding third-party obligations and to categorize them by type, creditor, age, and legal status.​
We work with the issuer's accounting and legal teams to verify that each liability is properly recorded on the company's books, that the amount is accurate, and that there are no offsets, counterclaims, or other complications that would affect the issuer's obligation to pay. For disputed claims, we review litigation records and consult with the issuer's counsel to understand the merits of the dispute and the likely outcome.​
This liability due diligence serves multiple purposes. First, it ensures that the credit limit we establish for the facility is appropriately sized to address the issuer's actual needs. Second, it provides the foundation for the court approval process by documenting the bona fide nature of the claims we will be paying. Third, it protects the family office from advancing funds to satisfy obligations that turn out to be invalid, overstated, or subject to defenses that would have reduced or eliminated the issuer's liability.​
Claim-by-Claim Verification Process
Once the facility is operational and the issuer begins submitting specific claims for payment, each submission undergoes a rigorous verification process before any funds are disbursed.​
For vendor invoices and accounts payable, we verify that goods or services were actually provided, that the invoice amount matches the underlying contract or purchase order, that the issuer has not previously paid the invoice, and that there are no quality disputes or other issues that would justify non-payment. We contact vendors directly to confirm account balances and payment instructions, protecting against the risk of fraudulent or redirected payments.​
For legal settlements and judgments, we review the settlement agreement or court order to verify the payment terms, we confirm with the claimant's counsel that the settlement has not been satisfied or modified, and we obtain appropriate releases and satisfactions that will protect the issuer from subsequent claims.​
For acquisition-related payments, we review the purchase agreement, verify the identity of selling shareholders or companies, confirm that closing conditions have been satisfied, and ensure that all required corporate approvals and third-party consents have been obtained before the family office wires acquisition consideration.​
This claim-by-claim verification process is time-consuming and requires significant legal and financial expertise, but it is absolutely essential to maintaining the integrity of the facility and ensuring compliance with Section 3(a)(10) requirements that securities be issued only in exchange for bona fide outstanding claims.​
Third-Party Confirmation and Payment Validation
Before any payment is made, the family office obtains direct confirmation from the third-party creditor or claimant regarding the outstanding balance, payment instructions, and any documentation required to fully satisfy the obligation.​
This direct third-party communication serves multiple protective functions. It confirms that the obligation is real and that the stated payee is the legitimate creditor (protecting against fictitious invoice schemes). It verifies that payment instructions are accurate (protecting against wire fraud and business email compromise schemes). It ensures that the payment amount is correct and will fully satisfy the issuer's obligation (protecting against disputes regarding partial payments or additional amounts due).​
After payment is made, we obtain from the third party a written acknowledgment of receipt and a confirmation that the issuer's obligation has been fully satisfied. We also obtain lien releases, termination statements, satisfactions of judgment, and other documentation necessary to ensure that the issuer has been completely released from the underlying obligation and that no encumbrances remain on the company's assets or shares.​
This comprehensive documentation package provides bulletproof evidence for financial statement purposes, for securities law compliance, and for protection of all parties' interests, and it ensures that neither the issuer nor the family office will face subsequent disputes or claims regarding the satisfied obligations.​
Long-Term Value Creation Through Systematic Liability Resolution
Jake P. Noch Family Office's direct payment structure enables systematic, comprehensive resolution of issuer liabilities that creates long-term value for all stakeholders.​
Operational Benefits of Clean Balance Sheets
When companies carry large pools of outstanding liabilities, those obligations create operational drag that extends far beyond the balance sheet impact. Vendors who are owed money become reluctant to extend credit or provide services, often demanding cash-on-delivery terms that constrain the company's working capital and operational flexibility. Unpaid professional service providers (attorneys, accountants, consultants) may stop providing advice or may withhold critical work product until accounts are brought current. Outstanding legal judgments and settlements can result in liens, attachment orders, and other legal impediments that make it difficult to operate freely or access traditional financing.​
By systematically paying these obligations directly to third parties, our facilities comprehensively eliminate these operational drags and restore the issuer to a position where it can conduct business on normal terms. Vendors who receive full payment from the family office typically become willing to resume normal trade credit relationships with the issuer, recognizing that the facility demonstrates a credible mechanism for resolving obligations. Professional service providers who are brought current can resume providing high-quality advice without the distraction and conflict of unpaid bills. Legal claims that are satisfied through direct family office payments are permanently eliminated, removing uncertainty from financial projections and management attention.​
These operational improvements often create value that significantly exceeds the direct balance sheet impact of the liability reduction, as the issuer regains the ability to execute its business strategy without the constant distraction and constraint of managing creditor relationships and collection actions.​
Positioning for Growth and Follow-On Financing
Companies with clean balance sheets and resolved legacy liabilities are dramatically more attractive to follow-on investors, strategic partners, and traditional lenders than companies with messy balance sheets and ongoing creditor disputes.​
One of the most important but least tangible benefits of our direct payment facilities is that they position issuers for subsequent stages of growth financing from institutional investors, strategic capital providers, and even traditional banks. These financing sources typically will not provide capital to companies with significant outstanding liabilities and creditor overhang, viewing the liability situation as an indication of poor management, uncertain prospects, or excessive risk.​
By using a Jake P. Noch Family Office facility to comprehensively resolve legacy liabilities through verified direct payments, issuers can present to subsequent financing sources a clean story: "We had legacy issues, we resolved them through a court-supervised process that paid all creditors in full, and we are now a clean, growing company ready for institutional capital."​
This positioning can be transformative, opening doors to sources of capital that would never have been available to the company before the liability resolution, and potentially providing access to capital on terms far more favorable than the family office facility itself.​
Building Credibility With Markets and Stakeholders
The fact that a company has successfully implemented a Section 3(a)(10) facility with court supervision and comprehensive third-party payment of claims provides powerful credibility with capital markets participants, rating agencies, analysts, and other stakeholders.​
The court approval process itself signals that an independent judicial officer has reviewed the company's situation and approved a fairness determination regarding the facility. The direct payment mechanism demonstrates that the company is committed to satisfying its obligations in full rather than seeking discounted settlements or bankruptcy avoidance. The comprehensive documentation and transparency regarding use of proceeds shows that the company is being managed with discipline and accountability.​
All of these factors contribute to improved market perception, which can translate into higher trading multiples, improved access to capital, better terms from vendors and customers, and ultimately enhanced shareholder value.​
Transparency, Communication, and Stakeholder Relations
Throughout the life of every facility, Jake P. Noch Family Office maintains a commitment to transparency regarding the direct payment process and regular communication with all stakeholders.​
Payment Reporting and Disclosure
We provide issuers with detailed monthly reports documenting all payments made to third parties during the reporting period, including payee name, payment amount, underlying obligation, and date of payment. These reports allow issuer management to maintain accurate books and records, provide required disclosures in periodic reports filed with the SEC, and respond to inquiries from shareholders, analysts, and other interested parties.​
The issuer's periodic reports (Forms 10-Q and 10-K) include detailed disclosure regarding the facility, including the categories of claims eligible for payment, the amount paid to third parties during each reporting period, the remaining credit limit available, and the reimbursement obligations incurred and satisfied during the period. This disclosure provides complete transparency to the investing public regarding how the facility is being used and what liabilities are being resolved.​
Coordination With Creditors and Claimants
The direct payment mechanism requires ongoing communication with the universe of third-party creditors and claimants who are eligible to receive payments under the facility. We work closely with these parties to understand their expectations regarding payment timing, to verify account balances and payment instructions, and to obtain required documentation and releases upon payment.​
This communication benefits creditors significantly, as they receive much more transparency and certainty regarding payment than they would typically receive from a distressed issuer. Rather than wondering whether and when they will be paid, creditors dealing with a Jake P. Noch Family Office facility can see a clear path to full payment and can plan their own finances accordingly.​
Many creditors become strong supporters of the facility precisely because of this transparency and payment certainty, and their support can be valuable in obtaining court approval and demonstrating to shareholders that the facility is beneficial to all stakeholders​
Shareholder Communication and Investor Relations
We work with issuers to develop clear, accurate investor relations messaging regarding the facility and the direct payment mechanism. This messaging typically emphasizes that the facility provides comprehensive resolution of legacy liabilities through court-supervised direct payments to third parties, that every dollar of dilution is directly resulting in balance sheet improvement, and that the fixed-dollar reimbursement structure protects shareholders from the predatory features common in toxic note financings.​
Issuers often receive positive feedback from long-term shareholders once they understand the direct payment mechanism and the protections it provides. Shareholders appreciate the transparency, the court oversight, and the certainty that facility proceeds are being used exactly as represented rather than being diverted to other purposes.​
Looking Forward: Expanding Our Platform to Serve More Issuers
As Jake P. Noch Family Office continues to expand our structured credit platform, we are actively seeking new opportunities to deploy capital through direct payment facilities that resolve liabilities, improve balance sheets, and create sustainable value for issuers and their shareholders.​
We are particularly interested in working with companies that have significant pools of legacy liabilities that are preventing them from accessing traditional financing or executing growth strategies, as our direct payment mechanism provides a uniquely effective solution to these situations. We are also interested in working with companies contemplating major acquisitions or strategic transactions where our ability to pay purchase consideration directly to sellers creates transaction certainty and flexibility that traditional financing cannot provide.​
We welcome inquiries from issuers of all sizes, from micro-cap companies facing existential creditor pressures to Fortune 500 corporations seeking innovative liability management solutions. Every inquiry is evaluated on its merits with the same commitment to rigorous due diligence, legal compliance, and alignment of interests that characterizes all of our work.​
Conclusion: Direct Payment as the Foundation for Fair, Transparent Capital
Jake P. Noch Family Office's requirement that we pay third-party creditors and claimants directly rather than providing cash to issuers is not a limitation on our platform—it is the defining feature that enables us to provide capital in a manner that is legally compliant, transparent, accountable, and protective of all stakeholders.​
The direct payment mechanism ensures perfect compliance with Section 3(a)(10) by guaranteeing that securities are issued in exchange for bona fide outstanding claims rather than for cash raised for general purposes. It provides complete transparency regarding use of facility proceeds, eliminating any possibility of diversion or misuse. It creates comprehensive documentation that supports financial statement accuracy and regulatory compliance. And it aligns the interests of the family office, the issuer, existing shareholders, and third-party creditors around the common goal of resolving liabilities, improving operations, and creating sustainable enterprise value.​
When combined with our fixed dollar reimbursement structure that eliminates predatory anti-dilution features, our no-interest economics that prevent spiraling obligations, and our court-supervised fairness process that protects all stakeholders, the direct payment mechanism completes a capital structure that we believe is unmatched in the marketplace for fairness, transparency, and alignment of interests.
We never provide a single dollar to the issuer, and that is exactly what makes our facilities superior to every alternative.
We invite you to learn more about our platform, explore whether a direct payment facility might be appropriate for your liability resolution needs, and join the growing community of issuers who have discovered that comprehensive third-party claim resolution through court-supervised direct payment is the most effective path to balance sheet improvement, operational flexibility, and long-term value creation.​
This material is provided for informational purposes only and does not constitute legal, tax, accounting, or investment advice, nor an offer or solicitation of any security or other financial instrument. Any structured credit facility must be evaluated based on the specific facts and circumstances of the issuer and must be structured and implemented with the advice of qualified legal and financial advisors. All facilities involve direct payment of third-party obligations rather than provision of cash to issuers, and are subject to court approval under Section 3(a)(10) and compliance with applicable federal and state securities laws. Jake P. Noch Family Office, LLC never provides funds directly to issuers—all facility proceeds are paid directly to verified third-party creditors and claimants. Past performance is not indicative of future results. Jake P. Noch Family Office, LLC is a private family office and is not a registered investment adviser, broker-dealer, or other regulated financial institution.