Estudios de caso

Asesor financiero de UCC de fabricante de escobas y cepillos en bancarrota

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

LEER MÁS cerrar Creado con Sketch.

La situación

100-year-old family-owned maker of brooms and brushes. $25 million in sales. $10 million debt.

  • Bankruptcy was due to several factors, including increased competition, loss of several significant customers, and an unsustainable debt structure
  • Sales had fallen from $53 million to under $25 million.
  • Secured lenders believed they were under-collateralized and pushed for the immediate liquidation of Harper, refusing to provide DIP or allow the use of cash collateral.
  • Harper initially filed for Chapter 11 with the hope of reorganizing; however, the company changed course and decided to sell its assets under 363 bankruptcy protection.
  • Order cancellations and inventory issues were mismanaged, and customers were fleeing weekly.
  • Unsecured creditors are willing to forego financial consideration to preserve jobs and a customer, but need to convince lenders to allow time for a reorganization or a sales process.

Nuestro asesoramiento

Our experts engaged as the financial advisor to the Unsecured Creditors Committee (UCC), who were owed $4 million

  • On behalf of the unsecured creditors' committee, our experts worked with the debtor’s management team to develop a list of scenarios to achieve the greatest recovery for creditors and the business.
  • Quickly performed a financial analysis of working capital needs and determined whether the company could survive on cash collateral only, without a DIP loan.
  • Served as expert witness for the unsecured creditors committee to support the motion for the use of cash collateral to provide time to pursue alternatives to liquidation
  • Successfully won a motion to use cash collateral, providing time for the company to pursue a sales process.
  • The stalking-horse buyer was identified, resulting in the sale of the company rather than liquidation.
  • Gross proceeds from the auction increased by nearly 50% from the stalking-horse bid.
  • The company purchased and manufacturing continues, preserving nearly 65 jobs and a customer for local suppliers in a town where Harper Brush was the largest employer and enterprise.

Contacto clave:

Dan F. Dooley, CTP 
Director ejecutivo sénior
Práctica de Asesoría Estratégica
+1 603 660 8952 
[email protected] 

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