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Chief Restructuring Officer of Crane Rental Company

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

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The Situation

Zeiger Crane leases a fleet of Manitowoc and Link-Belt Crawler Cranes ranging from 150-ton to 550-ton. $15 million in sales. $16 million debt.

  • The crane rental and construction industry was adversely impacted by the real estate bubble.
  • Overall, the construction industry declined in South Florida by 60%.
  • Five major Florida crane and construction companies filed for bankruptcy protection in the preceding year.
  • The company's strained relationship with lenders led to a default and the sale of collateral without approval.
  • The company rolled over assets every 3 years, which meant they had all-new assets that were severely underutilized during the business slowdown.
  • The owner had personal guarantees on all significant debt, and accounting and finance functions were very weak.

How We Advised

Our experts were engaged as the Financial Advisor and Chief Restructuring Officer (CRO).

  • Prepared a pre-bankruptcy restructuring plan to reduce debt and negotiate with lenders.
  • Used the bankruptcy court to assist in the return of underutilized assets to vendors.
  • Immediately reduced costs, renegotiated leases, and surrendered assets with negative net values to the company.
  • Worked with lenders to restructure debt payments to meet plan coverage.
  • Negotiated surrender of equipment to reduce payments and reduce personal guaranty issues.
  • Negotiated deals with all lenders, who, in turn, gave 100% support of the reorganization plan.
  • Reduced high-priced financed equipment to a more reasonable lease purchase plan that allowed flexible return of under-utilized assets.
  • Eliminated owner’s personal guaranties and negotiated out over $2 million in potential avoidance actions.
  • Saved the company from liquidation and created a platform for stability going forward.

Related Practice Areas

> Chief Restructuring Officer (CRO) and Interim Management Services 
Our experienced C-suite interim executives advise and support companies in financial distress, experiencing hypergrowth, or that are challenged by critical vacancies among senior leadership. Whether the leadership void results from operating challenges, a recent officer resignation, the need for added support during busy periods, or during an extended job search for the right permanent hire, our experienced executives provide immediate relief and value. 

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

Key Contact

For additional information about the engagement or to learn more about our services, contact:

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