Case Studies
J.S. Held Acquires Element Forensic Engineering, Expanding Insurance-Focused Capabilities for Mid-Market and Large Loss Property Claims Across Canada
Read MoreA regional transportation and logistics platform operating through 34 affiliated entities faced severe financial distress following a prolonged period of industry and macroeconomic challenges. The business provided a broad range of transportation and logistics services across the continental US and maintained a fleet of more than 2,000 tractors, trailers, and related equipment. At the time of the restructuring, the organization held more than $60M in secured debt obligations with multiple lenders and faced mounting vendor pressures, litigation threats, and liquidity constraints.
Despite extensive efforts to pursue strategic alternatives, including potential sale transactions, refinancing opportunities, and new equity investment, the company was unable to secure a viable path forward. Cash reserves had dwindled to approximately $1K, creating an immediate risk to payroll and payments owed to employees and independent contractors.
To maximize creditor recoveries and preserve viable aspects of the business, the company initiated an Assignment for the Benefit of Creditors (ABC) process under Minnesota law. Our experts were appointed as the Assignee and charged with taking control of operations, safeguarding assets, managing stakeholder interests, and executing a value-maximizing recovery strategy.
Acting in our fiduciary capacity as the Assignee, we oversaw the ABC process, assumed operational control, maintained business continuity, coordinated with secured creditors, managed court-approved financing arrangements, and worked to preserve enterprise value under an exceptionally compressed timeline.
The engagement required the development and execution of a comprehensive sale strategy involving extensive stakeholder coordination and the marketing of the company’s operating businesses and assets. Working alongside other advisors, our restructuring experts implemented court-approved sale procedures, managed communications with more than 1,000 creditors, and supported a nationwide sale process that generated multiple qualified bidders and culminated in a competitive auction designed to maximize recoveries.
The resulting transactions included both going-concern sales and orderly asset dispositions. Throughout the process, our team navigated complex creditor interests, multiple secured lenders, operational challenges, and rapidly evolving liquidity constraints while maintaining critical business functions. Our efforts generated more than $30M in transaction value, preserved ongoing business operations, supported the retention of hundreds of jobs, facilitated significant recoveries for secured creditors, and enabled the assumption of certain liabilities that benefited vendors and other stakeholders. What began as a distressed situation with insufficient funds to meet immediate payroll obligations concluded with a successful restructuring and a series of transactions that maximized value for stakeholders and preserved viable business operations in a highly complex and time-sensitive environment.
> 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.
