Case Studies
J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida
Read MoreThe 20-year-old company buys and services auto loans from dealerships. It was capitalized with senior bank debt and subordinated notes held by various investors. The company’s liquidity deteriorated after it loosened its credit, and its loss ratio doubled. However, the depth of its cash flow challenges was masked by incremental subordinated notes funded during its performance slide.
By the time our experts were retained as CRO, the company’s bank had lost confidence in its CEO and CFO. The company had breached its debt service coverage ratio a few months earlier and had ceased payments on its subordinated notes. Complicating matters, certain subordinated noteholders were in litigation with the bank over priority.
As CRO of an illiquid specialty lender, our experts achieved a full recovery for the company’s secured lender and a partial recovery for its subordinated creditors. Highlights of our successful strategic plan included:
We quickly took control of the company and:
David Stapleton, CPA, CLPF
Senior Managing Director
Strategic Advisory Practice
+1 213 235 0601
[email protected]
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