Estudios de caso

Recuperación del 100% para prestamistas garantizados y nuevo salvataje para productor de alimentos en bancarrota por $150 millones

J.S. Held adquiere Shechter & Everett para expandir los servicios de contabilidad forense en litigios de derecho de familia en Florida

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Inicio·Recuperación del 100% para prestamistas garantizados y nuevo salvataje para productor de alimentos en bancarrota por $150 millones

La situación

A $150M, family-owned manufacturer of Mexican-style cheeses and cream products with nationwide distribution was forced to suspend operations following the discovery of Listeria monocytogenes linked to certain cheese products, triggering voluntary recalls and extensive regulatory scrutiny. The Company entered into a Consent Decree with the FDA requiring significant remediation, enhanced controls, and third-party oversight. As a result, production was shut down for approximately 16 months.

The prolonged interruption caused $10M in accounts receivable and inventory write-offs, over $75M in recall-related litigation exposure, and covenant defaults on $11M of secured credit facilities. It also created acute liquidity pressure and strained the Company's relationship with its senior secured lender. After owner capital infusions and a phased restart in 2025, the Company entered Chapter 11 to stabilize operations and address its liabilities.

Nuestro asesoramiento

Shortly after the production shutdown, J.S. Held was retained by the Company, at its corporate counsel’s recommendation, to provide comprehensive financial advisory services and bankruptcy support throughout the restructuring.

Our experts guided the Company through a successful Chapter 11 process and §363 sale. This outcome drastically improved recoveries from negligible amounts to 100% for the secured lender, subordinated secured lenders, and priority creditors. It also preserved jobs and enabled the Company's legacy to continue through a vertically integrated new operation. Nuestras acciones claves incluyeron las siguientes:

  • Managing liquidity and assisting with the preparation of court-filed cash collateral budgets.
  • Supporting management in evaluating the financial implications of proposals from prospective buyers and negotiating terms.
  • Assisting in the review, structuring, and execution of the Asset Purchase Agreement (APA) in connection with the §363 sale.
  • Working closely with legal counsel, the secured creditor, and other bankruptcy professionals to ensure alignment and efficient advancement of the sale and bankruptcy process.
  • Preparing Schedules of Assets and Liabilities, Statements of Financial Affairs, and Monthly Operating Reports.

Los obstáculos y nuestras soluciones

  • Operating losses were mounting weekly and liquidity was rapidly diminishing, placing more than 200 jobs and the Company's 30+ year legacy at risk. Our team explored several strategic options with management and the principals, including a §363 sale. The §363 sale averted a Chapter 7 conversion, saved jobs, and significantly improved projected recoveries for the lender, creditors, and principals:
    • Secured lender’s recovery improved from a negligible amount expected to be collected over multiple years to 100% recovery of principal, interest, and fees across all entities involved, paid at closing.
    • Administrative, subordinated secured, and priority creditors’ recoveries improved from $0 to 100%.
    • Unsecured creditors received a recovery and the opportunity to pursue remnant assets.
    • Principals received full repayment of their DIP loan and full releases.
  • The §363 sale was complicated by the buyers' unwillingness to purchase the Company's operating assets without also acquiring the leased manufacturing facility, which was owned by the principals through a separate entity. Compounding this complexity, the Company and the principals' real estate assets held separate but cross-collateralized loans with the senior secured lender, who provided cash collateral authority in the bankruptcy. In response, our team:
    • Produced a compelling liquidation analysis and alternative strategy that motivated all parties to align on a viable path forward.
    • Worked with the Company’s bankruptcy counsel and multiple law firms representing the principals to clearly define fiduciary duties and run a competitive sale process that included the purchase of the Company’s operating assets and the real estate company’s property.
    • Supported the structuring and execution of the APA, schedules, sale motion, and sale order for a private sale without an auction.
    • Garnered full support for a private sale from the senior lender and the unsecured creditors’ committee.
    • Submitted a declaration attesting to the sale process and its superior benefit to all creditors.
  • The bankruptcy strategy was premised on $19M in DIP financing for working capital to rebuild sales. When the DIP financing stalled, the Company entered a period of prolonged operating losses that could have forced a Chapter 7 conversion. We resolved this challenge by:
    • Structuring DIP financing from the principals, subordinated to the senior secured lender, who provided cash collateral authority.
    • Implementing disciplined liquidity management and cash flow forecasting, allowing management to explore operating scenarios to bridge liquidity to another solution.
    • Helping management define the sale price and negotiate with prospective buyers to produce multiple LOIs.
    • Facilitating open and consistent communication among stakeholders, including lenders, ownership, and management.
  • Customers and vendors were wary of working with the Company after listeria-related issues, a 16-month shutdown, the bankruptcy filing, and unpaid prepetition invoices. To rebuild confidence, our team:
    • Provided verbal and written communications for management to deliver to customers and vendors throughout the restructuring, reinforcing confidence in the go-forward operation.
    • Educated all parties on bankruptcy proceedings and protections, allowing transparent and cooperative business relationships to resume.

Áreas de práctica relacionadas

> Asesoría sobre bancarrota​​​​​​​
Navegar un proceso de bancarrota es inherentemente complejo, ya que suele involucrar empresas en dificultades, litigios, registros financieros incompletos o inexactos, posibles fraudes y otros desafíos, además de estrictos procesos impuestos por los tribunales. Nuestro equipo experimentado de expertos en reestructuración y recuperación orienta a los clientes de manera fluida a lo largo de todo el proceso para optimizar los resultados para prestamistas, acreedores, accionistas y empleados.

 

> Soluciones para situaciones de crisis
Ofrecemos soluciones integradas para empresas en dificultades o insolventes que maximizan la recuperación, mitigan riesgos y restauran el valor de la organización. Nuestros expertos son contratados para ayudar a las organizaciones en crisis a estabilizar sus operaciones, proteger los intereses de las partes involucradas y ejecutar estrategias de recuperación. Adoptamos un enfoque operativo que va más allá del balance general para minimizar un mayor deterioro y construir un camino hacia un crecimiento sostenible.

Nuestros expertos