Case Studies
A large seafood processor and distributor in the Pacific Northwest and Alaska, with roots dating back to 1898, became insolvent due to mismanagement and changing market conditions. When its leadership failed to turn around operations or refinance the business, the company’s senior secured lenders froze its line of credit with approximately $55M outstanding and moved to put the company into receivership.
As receiver, our team recovered over $85M in less than six months, satisfying 100% of $68M in secured liens held by the senior lenders and fishermen by carefully designing and executing a comprehensive wind-down plan. Keys to a successful result included:
A consortium purchased the company from the world’s largest seafood company in late 2020. The seller sustained an estimated $28M loss on the sale and cautioned that increasing competition would continue challenging the company’s performance. A bumper year for salmon catch followed, causing sales prices to plummet. The company was forced to sell inventory at significant losses due to a significant oversupply of lower-grade inventory purchased at high cost and without a strong end-market. Working capital was severely impacted, limiting the company’s ability to service trade vendors, fishermen, and capital providers.
Key Obstacles & Our Solutions
Jake DiIorio
Managing Director,
Strategic Advisory
+1 213 235 0609
[email protected]
> Fiduciary Services – Receivers, Assignees, Trustees
We deliver unbiased, expert solutions in court-mandated and out-of-court situations that demand a third-party fiduciary, including insolvency, fraud, litigation, and shareholder disputes. Our full-service team of financial and operational experts serve as Federal and State Receiver, Bankruptcy Trustee & Examiner, and Assignee for the Benefit of Creditors (ABC), designing and implementing recovery strategies to maximize the value for all stakeholders.
> 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.