Case Studies
Industries: Financial, Leasing / Financial Services
Primary Services: Crisis Management, Strategic Advisory, Bankruptcy Advisory, Liquidation / Business Wind Down
Our client was a privately-held Leasing Company with a portfolio of approximately $100 million. The Company specialized in providing lease financing to a wide variety of companies ranging from small business to upper middle market companies. Transactions handled by the Company covered a myriad of assets including medical, transportation, production, and restaurant equipment. In addition to having its own direct sales force that generated lease volume, it served a significant broker network throughout the country.
Due to losses arising from defaulted leases and the recessionary economic climate, our client was experiencing serious cash flow problems. We were retained to advise the Company on possible restructuring alternatives.
At the onset of the engagement, our experts discovered material improprieties relating to the Company’s bank financing that were carried out by two of the Company’s officers. With support of the board, these issues were disclosed to the individual banks impacted by the transactions which were the only possible way to secure their continued support of the Company. However, the disclosure led to the termination of the officers involved and our experts being appointed as Chief Restructuring Officer for the Company. As CRO, we were charged with managing the day to day operations, controlling cash, as well as working with the creditors to identify the extent of their exposures and the development of a plan to maximize recovery values.
Following negotiations with a party that expressed interest in serving as a stalking horse in a bankruptcy 363 sale transaction, it was determined that insufficient enterprise and collateral value existed to fund a filing and generate a partial recovery for the creditors. As such, we staged the Company for an orderly liquidation in order to maximize the realization of the leases that served as collateral for the lenders.
Brian F. Gleason, CTP
Senior Managing Director
Strategic Advisory Practice
+1 610 659 8118
[email protected]
> Bankruptcy Advisory / Alternatives to Bankruptcy
When considering alternatives such as bankruptcy, you need a team with decades of experience helping leaders sitting in your exact seat to yield the best outcome for lenders, creditors, shareholders, and employees. We navigate the intricacies of bankruptcy and alternatives to bankruptcy with a 360-degree perspective gained from experience serving every constituent involved across wide-ranging industries.
> Chief Restructuring Officer (CRO) & 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.
> Liquidity Management
For companies in distress or undergoing rapid growth, ensuring sufficient cash flow to support operations requires a methodical approach to liquidity management marked by multi-department input, cross-constituent communication, prioritization, and negotiation. Our experts apply extensive experience identifying additional sources of cash, prioritizing payments, and interfacing with vendors to ensure continued operations.