Product Line Dispositions

Selected Examples
Product Line Sales

Successor to joint venture to exploit Developmental Products of two major food and chemical companies 

  • Retained by equity sponsor after major legal problems developed which eliminated current earnings. Project involved installing cash flow control systems, evaluating strategic options for 19 separate product lines, restructuring operations and positioning business for a series of multiple sale transactions.
  • Operations were successfully restructured and a series of financial forbearance agreements negotiated as individual product lines were sold. All debt was paid in full with a spin-off to management of rights to certain high potential developmental products.

Manufacturer of high-end Kitchen Appliances  

  • Retained in Chapter 11 proceedings by secured creditors to control debtor use of cash collateral, sell business assets and negotiate settlement of major liabilities.
  • Highly contentious disputes and damage claims by Far Eastern suppliers were settled favorably to obtain control of valuable tooling. This cleared the way for a 363b bankruptcy sale of the ongoing business at an attractive price to a strategic buyer.  

Geotechnical and Environmental Engineering consultants  

  • Retained by the debtor to provide Interim CFO, improve cashflow management, and develop organizational and operational restructuring after aggressive expansion into construction and petroleum ventures.
  • Restructured operations to liquidate loss businesses and sell high growth waste management contracts which were distinct from the company’s stable core consulting engineering operations. All creditors were paid in full with shareholders retaining substantial residual equity.  

Canadian producer of Plywood and Lumber products  

  • Retained as Interim Management to sell a company with a five year history of operating losses and disputes with local Indian tribes over timber cutting rights.
  • Successfully settled timber cutting rights issues which made the business attractive to strategic buyers. Two separate buyers each purchased two plants. Elimination of duplicate selling, general and administrative costs created an attractive incremental profit stream for each buyer and resulted in an attractive sale price.  

Lessor of computers, peripherals, other office and heavy-manufacturing equipment  

  • Due to company’s large operating losses and loan defaults, retained at the request of secured creditors to assume management control and sell assets; which included subsidiaries in five European countries.
  • By aggressive clean-up of lease portfolios, delivered going businesses to buyers in Europe. Proceeds greatly exceeded liquidation value with creditors paid in full.   

High quality Steel Foundry producing products for mining industry  

  • Retained to assume Board control and sell two plants with history of operating losses and potentially significant environmental liabilities.
  • Consolidated operations into one plant to return business to profitability. Sold business at attractive price, resolved environmental issues and sold second plant for real estate value.  

Sports Trading Cards and Specialty Printing  

  • Retained by Company upon demand of secured lenders to assess request for immediate cash infusion and monitor cash usage. Quickly identified accounting irregularities, lack of controls and serious omissions re: forecasts of critical cash requirements.
  • Assumed management control; minimized cash requirements; planned and executed Chapter 11 filing. Solicited bids and managed active competitive court auctions of trading card and printing businesses.  

Manufacturer of Specialty Chemicals and Pharmaceuticals  

  • Retained by company in Chapter 11 to (1) develop an operational restructuring plan to provide basis for Plan of Reorganization and (2) sell surplus and non-core assets as appropriate.
  • Non-core businesses and product lines were sold in a series of seven separate transactions. Dramatic profitability improvements were achieved in the core businesses retained and the reorganized debtor paid all creditors in full.