Estudios de caso

$100M Insolvent Co-Packing Company Receivership

J.S. Held adquiere GLI Advisors para fortalecer sus servicios de apoyo a proyectos de construcción en el oeste de EE. UU. y Hawái

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La situación

As the court-appointed receiver of a failing $100M co-packing company operating multiple facilities across the US, with $34M in senior secured debt and a negligible forced liquidation value, our team recovered $27.5M through a going-concern asset sale. The company lost a key customer during a period of increased competition and rising labor and overhead costs, resulting in a significant decline in cash flow, loan covenant defaults, and related litigation.

Nuestro asesoramiento

After failed attempts to sell the business and being unable to secure financing to pursue a Chapter 11 Bankruptcy, the company's senior secured lender petitioned the court to appoint our team as receiver to preserve collateral, negotiate with key vendors, preserve cash flow for imminent expenses, and sell the business. Our successful recovery was achieved by:

  • Preserving Value: Operated the business with limited cash flow for nearly four months to preserve value while designing and negotiating the going-concern sale.
  • Managing Stakeholders’ Expectations: Maintained relationships with frustrated customers, vendors, lessors, suppliers, and employees to ensure operating continuity.
  • Securing Financing: Established a feasible budget and negotiated with the senior secured lender to provide interim financing to fund operations.
  • Selling the Business: Navigated a complex process to gain the court’s approval to sell the business to provide comfort to the buyer that the transaction would be free and clear of objections from intervening parties.

Los obstáculos y nuestras soluciones

  • The company was marketed for sale as a going concern by an investment bank prior to the receivership.
    • Our team successfully negotiated an asset sale with a previously interested buyer by meeting with them to discuss and memorialize critical deal terms in writing and maintaining communication throughout the receivership to assure viability of the operating plan.
  • The company suffered from severe cash flow constraints during the receivership. Nuestro equipo:
    • Worked with the secured lender to develop a budget detailing working capital needs and a strategic operating plan.
    • Negotiated with a previously interested buyer to fund operations as part of its purchase price.
    • Stringently managed accounts receivable and employed creative strategies to improve cash collections by millions of dollars, such as requiring large customers with high A/R balances to settle their accounts before the company would provide additional services.
    • Structured and negotiated payment plans with equipment lessors, keeping them informed to ensure production lines remained operational.
    • Negotiated with key vendors owed significant payables, convincing them to continue working with the company during the receivership.
    • Identified alternative vendors to reduce the risk of business disruptions.
    • Analyzed customer contract profitability to justify budgeted production costs.

Contacto clave:

David Stapleton, CPA, CLPF 
Director ejecutivo sénior
Práctica de Asesoría Estratégica
+1 213 235 0601 
[email protected] 

 

Jake Diiorio, CTP 
Directora ejecutiva
Práctica de Asesoría Estratégica
+1 213 235 0609 
[email protected] 

 

Cooper Plyler, contador público certificado 
Director 
Práctica de Asesoría Estratégica
+1 213 235 0610 
[email protected] 

 

Maxwell Brandon
Director asociado
Práctica de Asesoría Estratégica
+1 858 855 1737
[email protected]

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