Case Studies

Downsized Operations Result in Successful 363 Sale

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

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Home·Downsized Operations Result in Successful 363 Sale

The Situation

Construction, Crane Rental. $25 Million Revenue. $125M Secured Debt. In the housing and Commercial construction industry, the downturn in South Florida resulted in revenue going from $100M down to $25M in one year.

  • The company had liquidity issues caused by a rapid annual revenue decline from $100 million to $25 million, and could not service debt.
  • The company had $125 million in secured debt spread among 10 secured lenders.
  • The company’s two owners did not get along, and they did not have a workable go-forward plan.
  • The company did not have an inventory system, and interchangeable equipment was spread out in multiple locations and among multiple secured lenders.
  • The company filed for Chapter 11 and immediately faced multiple motions for relief of stay from secured lenders.
  • The company was bleeding over $150,000 a month in cash.

How We Advised

Our experts were hired as CRO to manage the Chapter 11 process.

  • Immediately made cost structure changes, which allowed the company to maintain a cash flow positive throughout the entire bankruptcy.
  • Created an inventory system and equipment accounting system so all parties could track specific assets.
  • Persuaded secured lenders to withdraw relief of stay motions and to support a sale process.
  • Relieved the two owners of management decision-making and secured lender negotiations.
  • Created a utilization system and equipment evaluation process to isolate excess and idle assets.
  • Managed the sale process, handled due diligence, and negotiated with potential buyers.
  • Negotiated the return of excess equipment and negotiated with secured lenders for a go-forward plan.
  • The plan resulted in a cooperative return of excess equipment to lenders while keeping equipment that could be utilized heavily.
  • Restructured the company to profitability, which resulted in the successful sale of the business.
  • Filed a full payout plan in the bankruptcy court, fully supported by the secured lenders and creditors.

Key Contact

Mark J. Welch, CPA, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 412 498 8258 
[email protected] 

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