Chapter 11 Proceeding - Texas

A global manufacturer and marketer of branded consumer products had been overleveraged and was anticipating a Chapter 11 bankruptcy filing because it was unable to make principal payments on its debt.  A consortium of banks with a $250 million ABL facility in place was uncomfortable with...   

Chapter 11 Proceeding - Texas

A global manufacturer and marketer of branded consumer products had been overleveraged and was anticipating a Chapter 11 bankruptcy filing because it was unable to make principal payments on its debt.  A consortium of banks with a $250 million ABL facility in place was uncomfortable with the company's projections and concerned about the company's ability to survive as they considered providing DIP financing.

Action & Results

• Developed a financial model to clearly identify the company's cash requirements for the banks.  The process revealed that an additional $50 million in capital was required for the debtor's restructuring plan to be successfully implemented.  Additional capital was arranged and the lenders provided a $235 million DIP facility.
• This company was successfully restructured and able to exit the Chapter 11 process within nine months of filing.
• Implemented and monitored weekly budget analysis and updating processes along with variance analysis and reporting.  This activity allowed the company to move through the bankruptcy process avoiding any material budget deviations.
• Performed analysis related to adequate protection issues for senior lenders and evaluated the company's exit financing requirements.
• This company was successfully restructured and able to exit the Chapter 11 process within nine months of filing.

Chapter 11-Middle District of North Carolina

The company had ceased operations approximately six months prior to the engagement as a result of being locked out of its premises by its landlord.  The company filed a chapter 11 proceeding in an effort to restart the business.  The engagement was for the purpose of m...   

Chapter 11-Middle District of North Carolina

The company had ceased operations approximately six months prior to the engagement as a result of being locked out of its premises by its landlord.  The company filed a chapter 11 proceeding in an effort to restart the business.  The engagement was for the purpose of managing the attempted restart of the business and controlling all cash receipts and disbursements.  The case was ultimately converted to a chapter 7 as there was insufficient customer interest in the products to support its restart.

Action & Results

• Developed cash reporting and inventory systems for monthly presentation to the bankruptcy court in expert testimony.
• Oversaw sales and operations.
• Generated sufficient cash to repay the secured lender in full.
• Determined that the restart could not be continued and engaged an auctioneer to conduct an auction of all remaining inventory.
• Converted the case to a chapter 7 and delivered substantial cash from the auction to the chapter 7 trustee for the benefit of unsecured creditors.

Chapter 11 Proceeding - Middle District of North Carolina

Originally engaged by the borrower at the suggestion of its secured lender to develop a cash operating budget and to determine if the corporation could be restructured.  Determined that because of its fixed infrastructure costs, the corporation could not be re...   

Chapter 11 Proceeding - Middle District of North Carolina

Originally engaged by the borrower at the suggestion of its secured lender to develop a cash operating budget and to determine if the corporation could be restructured.  Determined that because of its fixed infrastructure costs, the corporation could not be restructured and that the best way to preserve value for the secured and unsecured creditors was to sell the business as a going concern.  While this process was underway an involuntary Chapter 11 proceeding was commenced.

Action & Results

• Prepared detailed operating cash budgets of the company's operations which were shared with its asset based lender.
• Worked closely with the asset based lender to assure continued funding of the company's operations.
• Prepared an offering memorandum for the business, solicited buyers, and obtained offers from bidders.
• Provided expert testimony with respect to the bids to acquire the business.
• Section 363 sale was completed and secured lender was paid in full.

Chapter 11 Proceeding - Middle District of Georgia

A 5,000 acre grower/packer/shipper of greens and other produce crops.  Engaged by the principals at a time when accounts were overdrawn on a regular basis and the principals were concerned about the farm's ability to continue its harvest.  The farm...   

Chapter 11 Proceeding - Middle District of Georgia

A 5,000 acre grower/packer/shipper of greens and other produce crops.  Engaged by the principals at a time when accounts were overdrawn on a regular basis and the principals were concerned about the farm's ability to continue its harvest.  The farm suffered significant losses over the past several years and is highly leveraged.

Action & Results

• Ceased all disbursements for a number of days to allow bank overdrafts to be repaid and initiated strict controls over cash disbursements.
• Developed and implemented a detailed cash budget to micro-manage the farm's cash on a daily basis.
• Revised the crop plan to reduce acreage farmed and allow the farm to concentrate on its core crops.
• Terminated sales force and outsourced the sales and marketing function to a national produce marketing firm.
• Hired a CFO.
• Reduced permanent employee headcount.
• Initiated discussions with all secured creditors and key unsecured creditors to secure their support of the farm's reorganization.
• Planned and executed the farm's Chapter 11 filing.
• The farm is currently continuing its operations in Chapter 11.

Chapter 11 Proceeding - Delaware

A well established and nationally known brand of snacks foods -- whose customer list included Kroger, Wal-Mart, and Dollar General among others -- was forced into Chapter 11 as a result of poor management oversight amid allegations of accounting irregularities.  The company was forced to...   

Chapter 11 Proceeding - Delaware

A well established and nationally known brand of snacks foods -- whose customer list included Kroger, Wal-Mart, and Dollar General among others -- was forced into Chapter 11 as a result of poor management oversight amid allegations of accounting irregularities.  The company was forced to close its manufacturing plant and headquarters facility and terminate all employees without notice.

Action & Results

• Evaluated 13 week cash budget for approval by the bank.
• Directed the timely completion of the Statement of Financial Affairs and Schedules for the company to provide accurate information to all parties involved in the Chapter 11 process.
• Managed the accounts receivable collection process and derived over $10 million in cash from a book of highly questionable receivables.  Negotiated settlements and terms with key accounts to generate badly needed cash flow.  The success of this activity funded the company\'s operations during the Chapter 11 process.
• The company\'s brands were sold to a strategic buyer via a 363 asset sale and the bank was repaid in full.

Chapter 11 Proceeding - Northern District of Georgia

The company, which included a wholesale distribution business and a retail division with locations in six southeastern states, was developed as a result of two acquisitions.  Due to excessive holiday inventory purchases and late payments to major vendors in the face o...   

Chapter 11 Proceeding - Northern District of Georgia

The company, which included a wholesale distribution business and a retail division with locations in six southeastern states, was developed as a result of two acquisitions.  Due to excessive holiday inventory purchases and late payments to major vendors in the face of a general industry slowdown, the company\'s credit limits were reduced to 50% of year earlier levels.  The lack of inventory also depleted all availability under the company\'s revolving loan facility.

Action & Results

• Completed analysis that was instrumental in convincing senior lender and major vendors that the deteriorating sales levels were a result of low inventory that came with   significantly reduced credit limits.
• Arranged DIP financing with senior lender and prepared DIP budget.
• Provided court testimony related to company performance and impact of credit reduction.
• Managed the company through the Chapter 11 process and arranged 363 sale of assets to a strategic buyer.
• Retained by buyer to assist in integration of acquired operations.

Chapter 11 Proceeding - District of Colorado

A two thousand acre grower shipper of organic produce (primarily leafy greens) entered bankruptcy in 2006 shortly after its local lender froze its bank accounts. The operation had been severely impacted by the spinach e coli recall.  Spinach was its largest cash crop and th...   

Chapter 11 Proceeding - District of Colorado

A two thousand acre grower shipper of organic produce (primarily leafy greens) entered bankruptcy in 2006 shortly after its local lender froze its bank accounts. The operation had been severely impacted by the spinach e coli recall.  Spinach was its largest cash crop and the recall essentially took it out of the market for nearly six weeks.  During the bankruptcy case, in 2007 the farm endured a devastating storm that took it out of production for the better part of 5 weeks.

Action & Results

• Was able to guide the farm through this financially challenging period   by developing a detailed cash budget and micro managing cash.
• New financing was sourced to fund operations.
• A Plan of Reorganization was presented and unanimously approved by all classes of its creditors and confirmed by the court allowing the farm to successfully emerge from bankruptcy.
• The farm is now completing its 2010 harvest and expects to continue its farming operations in the future.

Chapter 11 Proceeding - Southern District of Georgia

A large grower shipper of sweet onions located in Glenville, Georgia.  In November 2001, it filed a Chapter 11 proceeding.  Among other things Bland was suffering poor crop yields, very low pack out yields, and was very highly leveraged.
Action & Re...   

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