Crisis Management Engagements
Construction Materials Distribution Company
We led a project to review and assess the
financial and operational viability of four companies with combined annual
sales of $50 million. During this expedited engagement, executive management,
operational management and the financial condition of the Company were
evaluated and quantified. Exit strategies were successfully developed,
presented and implemented, that accomplished the goals of both the company and
the secured lender.
High Technology/Software
A sophisticated investor group required an
assessment of the business plan, management and financial viability of a high
tech start-up prior to investment of additional equity. The Firm’s professional
accomplished this comprehensive analysis, including arranging for an
independent assessment of the software product and its potential market in
approximately fifteen days, the time in which the company had cash available to
operate without further capital infusions.
Agricultural
On
a $300 million beef processing facility in Chapter 11 proceedings, a principal
of the Firm, performed an operating plant viability and management review,
including product cost reviews, valued added business segment analysis and IT
issues. He quickly assessed, developed
and facilitated business unit cost and personnel reductions and recommendations
while advising on implementation strategy by operating management.
Healthcare
We served as the crisis manager of these jointly
administered bankruptcy cases that were filed in Las Vegas, Nevada on February
28, 1997. Total HomeCare, Inc., a
publicly traded company, provided home health care services, durable medical equipment
and supplies to the Las Vegas, Nevada and Phoenix, Arizona metropolitan areas
through its three wholly owned subsidiaries.
In the months prior to filing its bankruptcy, Total
HomeCare had defaulted on its revolving line of credit and was subjected to a
change in its executive management that further exacerbated the tenuous nature
of the debtor/lender relationship.
During this engagement, after gaining consent for the continued use of
cash collateral, priorities included, stabilizing the debtor's operations,
re-establishing credibility with the lender by implementing accurate and timely
financial reporting, and resolving both client and vendor concerns. In this
engagement, we reviewed and analyzed the debtors' business operations,
personnel and management policies. The Firm recommended various operating and
chapter 11 exit strategies to management with many of these strategies
implemented by the Firm to assure the viability of the debtor as an ongoing
business concern. One of the Firm’s Principals conducted negotiations with both
secured and unsecured creditors to provide for uninterrupted acquisition of
inventory and re-negotiated deposits with utility companies. The Firm also
played a significant role in the timely review, preparation and completion of
four separate sets of voluminous schedules and statements that were required to
be filed with the Bankruptcy Court.
At the request of the secured lender, and based on its
lack of confidence in existing management, the Firm was named the debtors' sole
Agent to explore the sale of the enterprise. During this engagement, the
survival of the debtor hinged on our Principal’s ability to mediate disputes
between the debtor and its lender.
Subsequent to the replacement of operating management by the Board of Directors,
the exit strategy originally proposed by the Firm, was implemented and the
Nevada Bankruptcy Court approved a successful sale of the debtor’s business
operations.
Real Estate
A Principal of the Firm acted
as a team leader in work-outs of $2 billion of public and private limited
partnerships holding commercial, retail and residential real estate assets.
These partnerships had significant litigation risks and unusual financial
exposure for debt and equity stakeholders. Our Principal managed legal,
accounting, due diligence and regulatory risk issues associated with the
financial restructurings. Business solutions included development and
prosecution of contested and pre-packaged plan bankruptcy proceedings.
Bankruptcy
Engagements |Directorships |Interim
Management Engagements | International
Receivership