Case Studies
J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida
Read MoreThe client was a privately-held Plastic Resin Manufacturer. As a result of an economic downturn, sales of approximately $60 million. As a result of an economic downturn, sales had fallen to approximately $40 million two years later creating significant cash flow pressures on the business resulting in the Company defaulting on its $10 million of bank debt.
Faced with the inability to refinance the debt or attract new capital in order to remedy the problem, the owner made the decision to sell the business through a 363 bankruptcy process. Having marketed the Company and received an offer to acquire the assets, the Company was preparing to file bankruptcy without having arranged DIP financing, nor preparing an adequate cash flow forecast and other analysis to support the use of cash collateral. Filing in such a manner typically is not advisable, as it often leads to the Debtor’s inability to fund normal and necessary operating expenses, while also creating unnecessary tension between the Debtor and the other interested parties. Fortunately, our experts were engaged a few days before the intended filing date and we were able to support the Company with a professionally prepared bankruptcy filing.
Working with the Company’s owner, management, and the lender, we recommended delaying the filing until the proper analysis could be prepared in an attempt to negotiate a DIP facility with the lender. Within four weeks of being engaged, the DIP facility was successfully arranged to fund the Company through the bankruptcy process and the case filed.
In addition to the above, our team also:
The result was a successful sale of the Company’s assets within 60 days of filing, continuation of the business, and retention of the workforce.
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Navigating bankruptcy is inherently complex, often involving struggling businesses, litigation, incomplete or inaccurate financial records, potential fraud, and other challenges, in addition to strict court-mandated processes. Our experienced team of turnaround and restructuring experts seamlessly guides clients throughout the process to optimize outcomes for lenders, creditors, shareholders, and employees.
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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.
