Case Studies
J.S. Held Acquires GLI Advisors, Strengthening Our Construction Project Support Services in the Western US and Hawaii
Read MoreThe Company was a $62 million venture-backed Biomedical Life Sciences technology company that had experienced several rounds of funding, but ultimately had been unable to meet the expectations of its investors. As a result, the investors collectively determined that they were unwilling to continue supporting the Company.
The Company possessed substantial software technology products suitable for introduction to the marketplace, but existing management had been unsuccessful in capitalizing on these opportunities. A core group of employees and customers representing significant enterprise value were willing to stay engaged with the Company if a sale of the Company as a going concern could be achieved. It was understood by the investors that a full recovery of their investment was unattainable; however, their concerns were a professional closure of the corporation, preferably one outside of the bankruptcy process. This would allow investors to insulate their reputational risk and maintain a going concern for the Company.
The Board of Directors of the Company determined that the most appropriate course of action was to execute an Assignment for the Benefit of Creditors (“ABC”), whereby the assets of the Company would be transferred to a third-party fiduciary (the “Assignee”) for sale, with all proceeds provided to the creditors of the Corporation. J.S. Held, through its wholly owned subsidiary, PMCM, LLC, served as the Assignee in the ABC sale process. During the four-month sale period, PMCM operated the business under support from the existing senior lender on a limited scale basis. The strategy was to maintain both the core group of employees who possessed the key technical knowledge of the product and those core customers who had a desire to continue to utilize the Company’s biomedical software technology products. At the conclusion of the sale process, the Company’s assets were sold in a manner that maintained maximum enterprise value, allowed for a going concern of the Company, satisfied the senior secured lender in full, and provided a significantly higher return to all unsecured creditors than what would have been available in a traditional liquidation.
Brian F. Gleason, CTP
Senior Managing Director
Strategic Advisory Practice
+1 610 659 8118
[email protected]
> Assignment for the Benefit of Creditors (ABC)
As Assignees, our financial and operational experts leverage extensive restructuring experience to liquidate assets and quickly maximize proceeds for creditors while mitigating liability and preserving jobs. Our team serves as the distressed business’s de facto CEO and CFO, taking control of operations; managing creditors, employees, and litigation; preparing for and executing the sale of business assets; and distributing proceeds to creditors pursuant to priority.
> Solutions for Distressed Situations
We deliver integrated solutions for distressed and insolvent businesses that maximize recovery, mitigate risk, and restore enterprise value. Our experts are retained to help distressed organizations stabilize operations, protect stakeholder interests, and execute turnaround strategies. We take an operationally-focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth.