Under-Performing Businesses

Selected Examples
Sale of Under-Performing Businesses as Going Concerns

Multi-plant Electronic Hardware Repair services provider with operations in U.S., U.K. and France.  

  • Retained as Interim CEO by Board of publicly held company after $80 million of operating losses over a two year period and defaults on secured debt.
  • Restructured operations, closed plants, reduced corporate overhead by more than 50%, sold major subsidiary; and effected merger with similar business. 

$1.5 Billion Conglomerate  

  • Assumed Board control and executive management in a Chapter 11 Reorganization on behalf of Senior Lenders. Project included disengaging from extensive high cost, administrative, services provided by former corporate parent; effecting going concern sales of diverse businesses and winddown/liquidation of unprofitable operations.
  • Effected Plan of Reorganization under which the largest subsidiary emerged as a public company and other standalone businesses were sold in fourteen separate transactions. Resolved large, complex, liability exposures and sold 60 surplus commercial and industrial real estate properties. 

$900 Million Tobacco Distributor 

  • Engaged by company upon recommendation of senior secured lenders to facilitate an orderly bankruptcy filing. Assisted company in effecting an operational and organizational restructuring of business during Chapter 11, developed and documented a viable business plan.
  • Managed sale solicitation and active competitive bidding which included critical and highly contentious Bankruptcy valuation testimony regarding dramatically dissimilar bids.  

Synthetic Rubber Manufacturer

  • Engaged at the urging of the equity holders to evaluate a critical liquidity crisis, occurring only eight months after the Company executed a restructuring transaction transferring significant assets into a joint venture held in part by the parent corporation.
  • Viability assessment quickly revealed (1) massive post-restructuring management failures and resulting loss of confidence by key vendors and customers, compounded by (2) extended and continuing external market declines resulting in excess production capacity. Guided Company through a Chapter 11 filing, strategic sale of business as going concern and settlement of preference and fraudulent transfer claims between parent corporation and unsecured creditors. 

Upscale, high profile, Specialty Retailer 

  • After Company incurred major operating losses, retained by Japanese lender to assume Board control in consensual foreclosure.
  • Closed stores, expanded mail-order operations; settled complex real estate claims and sold business for an attractive price.

Computer Hardware Distributor with related Software Development operations in seven European countries.

  • Installed as Interim Management of newly formed holding company headquartered in Frankfurt after consensual foreclosure on European subsidiaries to settle debt of U.S. parent.
  • Restructured operations, dramatically reduced corporate overhead expenses, liquidated unprofitable software verticals, made significant personnel reductions despite onerous European labor laws, and negotiated highly favorable settlements of Dutch and Belgium tax liabilities. Sold operating businesses in four separate transactions.

Repackager and distributor of Memory Chips

  • Engaged by Japanese parent to facilitate an exit from an under-performing US subsidiary with failing management relationships.
  • Negotiated a buyout by management and guided debt placement solicitation with US banks to facilitate completion of the transaction. Japanese parent achieved repayment in full of outstanding investment and retained 20% residual interest in post-buyout equity.

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.

Steel Foundry providing products for heavy construction industry

  • Retained to assume Board control and sell large under-utilized unionized foundry with significant operating losses.
  • By soliciting governmental assistance in this very high profile local situation and renegotiating work rules in union contract to improve productivity, successfully arranged LBO sale to group of local industrialists.  

Video Conferencing Design & Installation

  • Initially engaged by board to provide restructuring recommendations for struggling operations, immediately identified critical deficiencies and misrepresentations to the board by senior management. Hired to assume CEO/CFO positions and address critical liquidity issues in expectation of a probable bankruptcy filing and liquidation.
  • Stabilized liquidity crisis by arranging bridge financing and key vender support. Orchestrated a reverse merger with a strategic competitor. 

Designer and importer of Electronic Games and Toys  

  • Installed as Interim CEO with concurrence of secured creditors after Chapter 11 filing; objective was maximization of proceeds from sale/liquidation of business assets.
  • Disposed of excess inventories; resolved major receivables disputes; maintained ongoing relationships with Far Eastern suppliers and customers in order to continue operations through the following Christmas season; developed reorganization plan involving sale of business as an ongoing entity. 

Audio Electronics design, import and distribution 

  • Due to large operating losses and continuing volume declines, installed as Interim CEO by equity sponsor to resolve disputes with Asian Pacific partner and prepare for a probable bankruptcy filing and liquidation.
  • Reduced operating overhead by over 50%, settled issues with partner and effected a going concern sale to a European strategic buyer. Achieved a 100% payout to unsecured creditors and an unanticipated return of equity to the shareholders.