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Company
A textile manufacturer and distributor with plants and offices in five (5) states and
revenues of $400 million.
Services Provided
Wind-downs and Liquidations,
Advisor to Creditor
Situation
Multiple years of losses and poor communications between the lender and borrower caused
lender fatigue and mistrust. The borrower, denied additional funding due to a deteriorating
collateral base, "walked away" causing an immediate shutdown of operations and loss of
employment for over 1,200 employees.
Our Role
We were retained by the secured creditor to assume complete responsibility for an orderly liquidation
of the assets of the company. We immediately developed a detailed liquidation analysis including expected
recovery projections and liquidation values. Analysis was undertaken to determine if a wind-down would
yield higher recovery values versus a liquidation/auction. Additionally, each business unit was examined
to determine if a going concern sale was appropriate. Finally, we took responsibility for coordinating
the activities of all other professionals including appraisers, investment bankers, auctioneers and
collection agencies.
Result
We arrived on site at all facilities less than twenty-four hours after the walkout thereby averting
any security or labor issues. Based on our analysis, a wind-down of certain facilities yielded a higher
recovery than a straight auction. We hired back hundreds of employees as independent contractors to assist
in the orderly wind-down and implemented skeleton operations in four plants in order to process WIP inventory
and fulfill customer orders. One facility was ultimately sold to a strategic buyer. Final liquidation yields
were significant due to our focus on asset preservation and quick intervention.
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