TESS

Capital Formation

Provided Financial Advisory Services for a company requiring Special Opportunity Financing in the Gas Turbine Sector originating $90,000,000 in financing for the acquisition of gas turbines.

Successfully placed the financing with a hedge fund.

 

Black Hills Power & Light

Project Financing

Provided project financing for a major mining operation in the Powder River Basin for Wyodak Resources a wholly owned subsidiary of Black Hills Power and Light during 1995. 

 Successfully structured the credit.

Eastover Mining Company

Project Financing

Negotiated, structured and successfully managed through payout the only non-recourse project financing ever done at NCNB (Bank of America) amounting to $20,000,000 for the Eastover Mining Company a wholly owned subsidiary of Duke Power during 1982.

 

Bluestone Coal

Operational and Financial Assessment

Provided due diligence analysis including an operational assessment and financial analysis of Bluestone Coal, a surface mining operation based in West Virginia, for a financing provided by CIT during 2004.

 

Kentucky Emerald Coal

Operational and Financial Assessment

During 2001 provided consulting services to Bank of America, the secured lender, for a regional coal mining company, Kentucky Emerald Coal.  Provided an operational and financial assessment and assisted the lender in the financial restructure of the company. Recommendations resulting in the recovery of 100% of the bank’s exposure.

 

Arclite

Operational Assessment

Provided an operational assessment to Arclite concerning their coal mining investments in West Virginia for potential private equity group.

 

British Hedge Fund

Acquisition Services

18 month project

 

Engaged to locate potential coal mining companies for acquisition in the Alabama coalfields.  Conducted assessment and negotiations for acquisition by British based hedge fund. 

 

Kentucky Emerald Coal

Operational Assessment

Provided consulting services to Bank of America, the secured lender, for a regional coal mining Company. Provided an operational and financial assessment and assisted the lender in the financial restructure of the Company. Recommendations resulted in the recovery of 100% of the bank’s loan over six months.

Smith Coal

Interim Management

Liquidation

Provided interim management after the seizure of the Company assets for an international coal brokerage operation, based in Birmingham, Alabama with loading facilities in Mobile, Alabama and New Orleans, Louisiana.  Successfully marketed the coal to several international buyers over a four-month period. Supervised the loading of the ships at the various ports in the Southeast.  Successfully paid out the bank through the sale of the coal and through insurance proceeds.

Cogentrix

Credit Facility

Provided the first $2,000,000 credit facility to currently one of the largest independent power producers in the United States.  The credit involved working in conjunction with the project finance investment banking team to facilitate the credit for the Hopewell Facility in Hopewell, Virginia.  Cogentrix was later sold to Goldman Sacs private equity group for $1.6 billion.

Patrick Coal

Debt Restructuring

Successfully recovered and restructured $40,000,000 in principal in a troubled energy loan originated in the mid 1970's.  Restructured the credit on a project-financing basis through related relationships with adjacent producers.  Resulted in the recovery of $40,000,000, 100%, in principal over the following seven years.

American Iron Reduction

Operational Assessment

Valuation Analysis

Conducted a comprehensive analysis of a $220 million   Direct Reduced Iron project, a single asset project financing in the steel industry for the loan syndicate composed of both domestic and foreign banks.   The analysis involved the financial review of the two sponsors along with a detailed operational assessment of the project. Provided recommendations to the secured lenders for restructuring the credit and selling the asset.  Estimated sale price was within 2% of the actual price received four years later.

NRG

Valuation

 

Provided valuation and industry analysis for the acquisition of $3.3 billion in secured bonds from, NRG, a distressed utility for a major hedge fund.  Assessed potential value of several utility cogeneration projects and tradition power generating facilities in this $350,000,000 acquisition.

 

C.T. Parts Co.

Debt Placement

Provided Financial Advisory Services for a company requiring Special Opportunity Financing in the Gas Turbine Sector originating $18,000,000 in financing for the acquisition of three 7EA’s Gas Turbines.  Successfully placed the financing with private equity.

 Corson Furniture

Chapter 11

M&A Advisory

Originated and provided operational and financial consulting services to a $90,000,000 upholstery manufacturing, based in North Carolina.  Advised the Company through Chapter 11 planning, secured a DIP credit facility. Guided the Company into Chapter 11.  Engaged as financial advisor for the sale of the Company.  

 

The Company was successfully sold in Chapter 11 to a larger strategic buyer preserving all jobs and paying out the secured lender 100%

Pittsburgh Penguins

Chapter 11

M&A Advisory

Valuation

Litigation Support

Provided Consulting services.  Conducted a valuation of the franchise, conducted the due diligence for the DIP financing and provided analysis and expert witness testimony for the restructure of the lease agreement for the Civic Arena in Chapter 11. 

 

Testimony resulted in the severance of the lease and allowed the restructure of the team.  The franchise continues to be successful in the league.

Spartan International

Litigation Support

Valuation Analysis

Forensic Analysis

As expert witness provided Damage Calculations and Expert Witness Testimony for the Chapter 7 Trustee currently in litigation involving the debtor.  Reconstructed of the financial statements after several years of inactivity to assess the abrupt shutdown of the Company.  Developed a complex cash-forecast and liquidation analysis to support the damage analysis.

 

Settlement was reached one hour before scheduled testimony in the trial resulting in $2,500,000 for the estate

Washington Industries

Debt Restructuring

From the lender perspective, achieved a reduction of $17,000,000 on a $19,500,000 credit facility on the second largest troubled credit in North Carolina.  Re-advanced $2,500,000 in the surviving entity, which continued successfully in operation. 

 

Successfully recovered eventually recovered 100% of credit and preserved 600 jobs in eastern North Carolina.  At the time it was the largest single recovery achieved at the bank.

Complus

Interim Management

Liquidation

Engaged to provide liquidation management of the company for the secured lender after the operations had been shutdown with the final payroll to the employees pending.   

 

Successfully recovered $8,000,000 or 100% of accounts receivable paying the bank out in full.  In addition, paid the unsecured creditors in full. 

Global Tissue

 

Interim Management

Liquidation

M&A Advisory

Engaged to provide liquidation management of the company. Developed the plan of liquidation to maximize recovery for a 40 acre under one roof operating facility.   Successfully assisted in the management of the shutdown of operations.  Simultaneously engaged as Financial Advisor for the sale of the Company. 

 

Successfully sold the Company to a strategic buyer recovering 100% for the secured lender and successfully avoiding a single asset real estate case.

Washington Furniture Manufacturing Company

Interim Management

Liquidation

M&A Advisory

Appointed CEO to manage $150 Million furniture Company headquartered in Mississippi operating six plants in two states.  Managed the Company through a liquidating Chapter 11, reducing operations to remaining profitable segment.  Built out raw material inventory creating a sale through plan for the Company.  Developed a marketing plan to push the inventory in the market.  Successfully executed a controlled liquidation resulting in high recoveries for the M&E, inventory and other assets through innovative liquidation methods. Successfully paid out the secured lender and all pending medical claims against the employees. Divided the company into several divisions for sale as going concerns. 

 

Successfully paid out the secured lender 100% and paid all medical claims 100%.

 

Castleberry Foods

Interim Management

M&A Advisory

Debt Restructuring

Interim management and Instituted new sales and logistics procedures to improve profitability.  Developed new packaging initiatives to enhance product value.    Negotiated with key vendors to continue shipping pending the impending sale of the Company to a strategic buyer.  In addition, conducted the corporate finance advisory work required to complete the sale of the Company to a strategic buyer.

 

The Company was sold resulting in the 100% payout of the secured lender with no loss of jobs.  

AAA Inc.

Chapter 11 Trustee

Forensic Analysis

Appointed to provide operational management to an alarm-monitoring Company, and assumed position of general partner for seven Limited Investment Partnerships investing in alarm accounts.  Conducted an analysis of the interaction between the partnerships to determine the extent of the fraud in this ponzi scheme.  Approximately 120 elderly investors lost between $12,000,000 and $20,000,000 in funds in this scheme.  Conducted forensic analysis successfully tracing diverted funds to Mexico and the Cayman Islands involving an international securities fraud.

 

Successfully operated the business through sale to a diversified electric utility recovering 100% for the secured lenders.

Carolina Leasing and nine related companies

Chapter 11 Trustee

Forensic Analysis

Liquidation

Litigation Support

Chapter 11 Trustee appointed for the operational management - involved in leasing, equipment finance, factoring, Buy-Here Pay-Here auto sales and note financing, long haul and short haul trucking, auto transport operation, auto sales car lots and real estate development.  The companies operated throughout the Southeast.  Successfully managed the operations selling profitable portions, shutting down the unprofitable segments and liquidating those areas of the business where the maximum value could be obtained for the secured and unsecured creditors.  The case was the largest bankruptcy in the history of South Carolina at that time and based on our research and involvement with the Justice Department resulted in two criminal convictions. 

 

Managed the portfolios to natural liquidation due to Reg “Z” issues in the formation of the paper

GFT, Inc

Chapter 11 Trustee

M&A Advisory

Forensic Analysis

 

 

A fiberglass manufacturer constructed through a project financing that had been shutdown three years previously, to determine if the Company could be restarted or sold. Negotiated sale of the Company resulting in a 70% recovery to the secured lender who wrote off 100% of the loan three years before.   Conducted significant negotiations with unsecured and priority claimants.  The site contained 4.5 million pounds of chemicals, which were removed and sold to local users under our management.  In addition, managed the removal of approximately 70,000 pounds of hazardous materials including nuclear tracing elements.  The restructure involved a complex settlement among the taxing authorities, the secured lender, the unsecured creditors and the buyer of the facility, PPG. 

 

The result was the restart of the facility after extensive reconstruction and the creation of 600 jobs in the poorest county of South Carolina.

Team Three Racing

Chapter 11 Constructive Trustee

M&A Advisory

Liquidation

Forensic Analysis

 

Provided operational management and to preserve the assets of several operating entities including a Winston Cup and Busch NASCAR Racing Teams, real estate Development Company, and a theme restaurant. 

 

The companies were successfully operated and sold over a period of four months resulting in a 100% payout to the secured lender.  The   investigation of various transitions provided evidence to the Chapter 7 Trustee, which resulted in one criminal conviction.

Kentucky Emerald Coal

Operational Assessment

During 2001 provided consulting services to Bank of America, the secured lender, for a regional coal mining Company. Provided an operational and financial assessment and assisted the lender in the financial restructure of the Company.

 

Recommendations resulted in the recovery of 100% of the bank’s loan over six months.

Smith Coal

Interim Management

Liquidation

Provided interim management after the seizure of the Company assets for an international coal brokerage operation, based in Birmingham, Alabama with loading facilities in Mobile, Alabama and New Orleans, Louisiana.  Successfully marketed the coal to several international buyers over a four-month period. Supervised the loading of the ships at the various ports in the Southeast. 

 

Successfully paid out the bank through the sale of the coal and through insurance proceeds.

Cogentrix

Credit Facility

Provided the first $2,000,000 credit facility to currently one of the largest independent power producers in the United States.  The credit involved working in conjunction with the project finance investment banking team to facilitate the credit for the Hopewell Facility in Hopewell, Virginia. 

 

Cogentrix was later sold to Goldman Sacs private equity group for $1.6 billion.

Patrick Coal

Debt Restructuring

Successfully recovered and restructured $40,000,000 in principal in a troubled energy loan originated in the mid 1970's.  Restructured the credit on a project-financing basis through related relationships with adjacent producers.

 

Resulted in the recovery of $40,000,000, 100%, in principal over the following seven years.

American Iron Reduction

Operational Assessment

Valuation Analysis

Conducted a comprehensive analysis of a $220 million joint venture, a single asset project financing in the steel industry for the loan syndicate composed of both domestic and foreign banks.   The analysis involved the financial review of the two sponsors along with a detailed operational assessment of the project. Provided recommendations to the secured lenders for restructuring the credit and selling the asset. 

 

Estimated sale price was within 2% of the actual price received four years later.

Real Estate Developer

Debt Restructuring

Crisis Management

Advisory services to restructure $55,000,000 in debt with twenty-one financing entities, sixteen banks and six private equity groups all with stand-alone credit facilities.

 

The engagement is currently in progress.  Restructuring is being completed without the filing of Chapter 11. 

Beacon Blanket

Operational Assessment

Controlled Liquidation

M&A Advisory

Spin off from Pillowtex encountered operational, marketing and financial problems.  Engaged by the company at the request of the bank to assess the situation and develop solutions to stabilize the company or pursue the controlled liquidation of the company to recover the debt.

 

Sold one division as a going concern to maximize value and saving jobs while employing aggressive liquidation strategies to recover proceeds on the remaining assets repaying $35,000,000 in debt.

Real Estate Developer

Debt Restructure

Engaged to arrange a $30,000,000 structured financing transaction for a in the Southeast.  The proceeds will be used to consolidate short-term debt and payout several short-term credit facilities.

 

The engagement is currently in progress.

 
Corson Furniture

Chapter 11

M&A Advisory

Originated and provided operational and financial consulting services to a $90,000,000 upholstery manufacturing, based in North Carolina.  Advised the Company through Chapter 11 planning, secured a DIP credit facility. Guided the Company into Chapter 11.  Engaged as financial advisor for the sale of the Company.  

 

The Company was successfully sold in Chapter 11 to a larger strategic buyer preserving all jobs and paying out the secured lender 100%

Pittsburgh Penguins

Chapter 11

M&A Advisory

Valuation

Litigation Support

Provided Consulting services.  Conducted a valuation of the franchise, conducted the due diligence for the DIP financing and provided analysis and expert witness testimony for the restructure of the lease agreement for the Civic Arena in Chapter 11. 

 

Testimony resulted in the severance of the lease and allowed the restructure of the team.  The franchise continues to be successful in the league.

Spartan International

Litigation Support

Valuation Analysis

Forensic Analysis

As expert witness provided Damage Calculations and Expert Witness Testimony for the Chapter 7 Trustee currently in litigation involving the debtor.  Reconstructed of the financial statements after several years of inactivity to assess the abrupt shutdown of the Company.  Developed a complex cash-forecast and liquidation analysis to support the damage analysis.

 

Settlement was reached one hour before scheduled testimony in the trial resulting in $2,500,000 for the estate

Washington Industries

Debt Restructuring

From the lender perspective, achieved a reduction of $17,000,000 on a $19,500,000 credit facility on the second largest troubled credit in North Carolina.  Re-advanced $2,500,000 in the surviving entity, which continued successfully in operation. 

 

Successfully recovered eventually recovered 100% of credit and preserved 600 jobs in eastern North Carolina.  At the time it was the largest single recovery achieved at the bank.

Complus

Interim Management

Liquidation

Engaged to provide liquidation management of the company for the secured lender after the operations had been shutdown with the final payroll to the employees pending.   

 

Successfully recovered $8,000,000 or 100% of accounts receivable paying the bank out in full.  In addition, paid the unsecured creditors in full. 

Global Tissue

 

Interim Management

Liquidation

M&A Advisory

Engaged to provide liquidation management of the company. Developed the plan of liquidation to maximize recovery for a 40 acre under one roof operating facility.   Successfully assisted in the management of the shutdown of operations.  Simultaneously engaged as Financial Advisor for the sale of the Company. 

 

Successfully sold the Company to a strategic buyer recovering 100% for the secured lender and successfully avoiding a single asset real estate case.

Washington Furniture Manufacturing Company

Interim Management

Liquidation

M&A Advisory

Appointed CEO to manage $150 Million furniture Company headquartered in Mississippi operating six plants in two states.  Managed the Company through a liquidating Chapter 11, reducing operations to remaining profitable segment.  Built out raw material inventory creating a sale through plan for the Company.  Developed a marketing plan to push the inventory in the market.  Successfully executed a controlled liquidation resulting in high recoveries for the M&E, inventory and other assets through innovative liquidation methods. Successfully paid out the secured lender and all pending medical claims against the employees. Divided the company into several divisions for sale as going concerns. 

 

Successfully paid out the secured lender 100% and paid all medical claims 100%.

 

Castleberry Foods

Interim Management

M&A Advisory

Debt Restructuring

Interim management and Instituted new sales and logistics procedures to improve profitability.  Developed new packaging initiatives to enhance product value.    Negotiated with key vendors to continue shipping pending the impending sale of the Company to a strategic buyer.  In addition, conducted the corporate finance advisory work required to complete the sale of the Company to a strategic buyer.

 

The Company was sold resulting in the 100% payout of the secured lender with no loss of jobs.  

AAA Inc.

Chapter 11 Trustee

Forensic Analysis

Appointed to provide operational management to an alarm-monitoring Company, and assumed position of general partner for seven Limited Investment Partnerships investing in alarm accounts.  Conducted an analysis of the interaction between the partnerships to determine the extent of the fraud in this ponzi scheme.  Approximately 120 elderly investors lost between $12,000,000 and $20,000,000 in funds in this scheme.  Conducted forensic analysis successfully tracing diverted funds to Mexico and the Cayman Islands involving an international securities fraud.

 

Successfully operated the business through sale to a diversified electric utility recovering 100% for the secured lenders.

Carolina Leasing and nine related companies

Chapter 11 Trustee

Forensic Analysis

Liquidation

Litigation Support

Chapter 11 Trustee appointed for the operational management - involved in leasing, equipment finance, factoring, Buy-Here Pay-Here auto sales and note financing, long haul and short haul trucking, auto transport operation, auto sales car lots and real estate development.  The companies operated throughout the Southeast.  Successfully managed the operations selling profitable portions, shutting down the unprofitable segments and liquidating those areas of the business where the maximum value could be obtained for the secured and unsecured creditors.  The case was the largest bankruptcy in the history of South Carolina at that time and based on our research and involvement with the Justice Department resulted in two criminal convictions. 

 

Managed the portfolios to natural liquidation due to Reg “Z” issues in the formation of the paper

GFT, Inc

Chapter 11 Trustee

M&A Advisory

Forensic Analysis

 

 

A fiberglass manufacturer constructed through a project financing that had been shutdown three years previously, to determine if the Company could be restarted or sold. Negotiated sale of the Company resulting in a 70% recovery to the secured lender who wrote off 100% of the loan three years before.   Conducted significant negotiations with unsecured and priority claimants.  The site contained 4.5 million pounds of chemicals, which were removed and sold to local users under our management.  In addition, managed the removal of approximately 70,000 pounds of hazardous materials including nuclear tracing elements.  The restructure involved a complex settlement among the taxing authorities, the secured lender, the unsecured creditors and the buyer of the facility, PPG. 

 

The result was the restart of the facility after extensive reconstruction and the creation of 600 jobs in the poorest county of South Carolina.

Team Three Racing

Chapter 11 Constructive Trustee

M&A Advisory

Liquidation

Forensic Analysis

 

Provided operational management and to preserve the assets of several operating entities including a Winston Cup and Busch NASCAR Racing Teams, real estate Development Company, and a theme restaurant. 

 

The companies were successfully operated and sold over a period of four months resulting in a 100% payout to the secured lender.  The   investigation of various transitions provided evidence to the Chapter 7 Trustee, which resulted in one criminal conviction.

Kentucky Emerald Coal

Operational Assessment

During 2001 provided consulting services to Bank of America, the secured lender, for a regional coal mining Company. Provided an operational and financial assessment and assisted the lender in the financial restructure of the Company.

 

Recommendations resulted in the recovery of 100% of the bank’s loan over six months.

Smith Coal

Interim Management

Liquidation

Provided interim management after the seizure of the Company assets for an international coal brokerage operation, based in Birmingham, Alabama with loading facilities in Mobile, Alabama and New Orleans, Louisiana.  Successfully marketed the coal to several international buyers over a four-month period. Supervised the loading of the ships at the various ports in the Southeast. 

 

Successfully paid out the bank through the sale of the coal and through insurance proceeds.

Cogentrix

Credit Facility

Provided the first $2,000,000 credit facility to currently one of the largest independent power producers in the United States.  The credit involved working in conjunction with the project finance investment banking team to facilitate the credit for the Hopewell Facility in Hopewell, Virginia. 

 

Cogentrix was later sold to Goldman Sacs private equity group for $1.6 billion.

Patrick Coal

Debt Restructuring

Successfully recovered and restructured $40,000,000 in principal in a troubled energy loan originated in the mid 1970's.  Restructured the credit on a project-financing basis through related relationships with adjacent producers.

 

Resulted in the recovery of $40,000,000, 100%, in principal over the following seven years.

American Iron Reduction

Operational Assessment

Valuation Analysis

Conducted a comprehensive analysis of a $220 million joint venture, a single asset project financing in the steel industry for the loan syndicate composed of both domestic and foreign banks.   The analysis involved the financial review of the two sponsors along with a detailed operational assessment of the project. Provided recommendations to the secured lenders for restructuring the credit and selling the asset. 

 

Estimated sale price was within 2% of the actual price received four years later.

Real Estate Developer

Debt Restructuring

Crisis Management

Advisory services to restructure $55,000,000 in debt with twenty-one financing entities, sixteen banks and six private equity groups all with stand-alone credit facilities.

 

The engagement is currently in progress.  Restructuring is being completed without the filing of Chapter 11. 

Beacon Blanket

Operational Assessment

Controlled Liquidation

M&A Advisory

Spin off from Pillowtex encountered operational, marketing and financial problems.  Engaged by the company at the request of the bank to assess the situation and develop solutions to stabilize the company or pursue the controlled liquidation of the company to recover the debt.

 

Sold one division as a going concern to maximize value and saving jobs while employing aggressive liquidation strategies to recover proceeds on the remaining assets repaying $35,000,000 in debt.

Real Estate Developer

Debt Restructure

Engaged to arrange a $30,000,000 structured financing transaction for a in the Southeast.  The proceeds will be used to consolidate short-term debt and payout several short-term credit facilities.

 

The engagement is currently in progress.

 iCarbon

Operational Analysis

 

Restructure Strategy

 

Faced with a cash flow squeeze as a result of a broad acquisition and development strategy equity investors required the assessment of the business.  Provided operational and financial assessment of iCarbon, an international graphite mining company with operations in the United States, Canada, China and Madagascar. Developed the strategy to recover the unsecured loan made by a British private equity fund through an asset acquisition settlement agreement for the Canadian mining properties.  Conducted full inspection of the global operations with management.

 

The strategy was successfully executed resulting in the formation of a new company obtaining the Canadian operations as a settlement with iCarbon.

 

Smith Coal Company

 

Operational Management

 

Provided interim management after the seizure of the company assets by the lending group for an international coal brokerage operation, Smith Coal based in Birmingham, Alabama with loading facilities in Mobile, Alabama and New Orleans, Louisiana.  Managed the coal brokerage operation selling coal inventory located on three ports in the Gulf regions.

 

Successfully marketed the coal to several international buyers over a four-month period.  Supervised the loading of the ships at the various ports in the Southeast.  Successfully paid out the bank through the sale of the coal and through insurance proceeds.

 iCarbon

Operational Analysis

 

Restructure Strategy

 

Faced with a cash flow squeeze as a result of a broad acquisition and development strategy equity investors required the assessment of the business.  Provided operational and financial assessment of iCarbon, an international graphite mining company with operations in the United States, Canada, China and Madagascar. Developed the strategy to recover the unsecured loan made by a British private equity fund through an asset acquisition settlement agreement for the Canadian mining properties.  Conducted full inspection of the global operations with management.

 

The strategy was successfully executed resulting in the formation of a new company obtaining the Canadian operations as a settlement with iCarbon.

 

Smith Coal Company

 

Operational Management

 

Provided interim management after the seizure of the company assets by the lending group for an international coal brokerage operation, Smith Coal based in Birmingham, Alabama with loading facilities in Mobile, Alabama and New Orleans, Louisiana.  Managed the coal brokerage operation selling coal inventory located on three ports in the Gulf regions.

 

Successfully marketed the coal to several international buyers over a four-month period.  Supervised the loading of the ships at the various ports in the Southeast.  Successfully paid out the bank through the sale of the coal and through insurance proceeds.

 

Capital Formation

 

Provided Financial Advisory Services for a company requiring Special Opportunity Financing in the Gas Turbine Sector originating $18,000,000 in financing for the acquisition of three 7EA’s Gas Turbines for parting. 

 

Successfully placed the financing with a private equity fund.

 

 

 


 

Operational Assessment

 

Financial Analysis

 

 

Conducted a comprehensive industry and company analysis for the controlling interest investment in this vertical industry leading textile and apparel manufacturer, Galey and Lord, for a major hedge fund. A comprehensive analysis was conducted.

 

Provided the investment group with a parameter of investment options.

 

Due Diligence

 

Operational Assessment

 

Provided due diligence for Textron Financial in assessing a potential Credit Facility to a specialty grocery chain in a startup environment. Reviewed proposed operational strategy and business plan from the Company. 

 

Conducted the analysis with the lenders on the team.  Developed recommendations for the lender concerning the loan. 

 

 

Operational Assessment

 

Cash Model Development

 

Liquidation Analysis

 

Billings declined coupled with a change in senior management placing the company in a difficult financial position.  Provided consulting services to the secured lender concerning SCB a publicly traded staffing company. Developed a cash model for the operation and worked with management to implement improvements in operations.

 

Developed the workout strategy and plan to reduce its credit exposure with the company. Successfully implemented the strategy reducing the bank exposure.

 

 

Interim Management

 

Liquidation

Services

 

Engaged to provide liquidation management of the company for the secured lender after the operations had been shutdown with the final payroll to the employees pending.   

 

Successfully recovered $8,000,000 or 100% of accounts receivable fully paying out both the banks and unsecured creditors.  Successfully recovered $8,000,000 or 100% of accounts receivable paying both the bank and unsecured creditors. 

Interim Management

 

Liquidation

Services

 

M&A Advisory

 

Plagued by significant losses in all product lines the bank group pressed for new interim management to develop a strategy for the company.  Engaged to provide liquidation management of the company to this multi product paper products mill. Developed the plan of liquidation to maximize recovery for a 40-acre facility under one roof operating facility.   Successfully assisted in the management of the shutdown of operations.  Simultaneously engaged as Financial Advisor for the sale of the Company. 

 

Successfully liquidated existing inventory and accounts receivables paying out the bank’s short-term exposure. Sold the Company to a strategic buyer recovering 100% for the secured lender on the real property.

 

Pre Chapter 11 Advisory

 

Operational Consulting

 

Valuation services

 

Forensics Analysis

 

 

The holding company of AHERF filed for protection under Chapter 11.  The core asset producing the cash flow was not placed in Chapter 11 but used as a source of funds to the holding company.  Originated the engagement staffed with 40 professionals to represent this core business.  Provided traditional crisis management support throughout the bankruptcy of AHERF to Allegheny General Hospital.  Employed Information Risk Management Teams, Valuation experts, Forensic and Restructure teams to address issues in the case. This was the largest non-profit bankruptcy in the history of the U.S. at $4.5 billion in debt.

 

Successfully negotiated the purchase of several physician practices from the trustee and negotiated a settlement for 100% of the claims made by the Trustee against the hospital.  Hospital sold to competitor at appraised value.  Unsecured creditors debt assumes by acquirer.

 

 

Chapter 11 Advisory

 

M&A Advisory

 

The company aggressively pursued several significant projects being managed by Duke Fluor Daniel resulting in excessive stress on cash flow.  Given the state of the market company management was concerned about keeping the company viable placing pressure on the sales team. Provided operational and crisis management consulting to a steel fabricator, prior to, during and post Chapter 11.  Developed new marketing strategies to maintain the operations while only existing on cash collateral.  Restructured product flow to focus on smaller, quick turn products to improve cash-flow collection. Began to seek new market contacts for potential projects. Engaged as financial advisor for the sale of the company in the transaction.  Located a buyer, a major Middle Eastern concern, for the Company and provided advisory services through the closing.

 

Successfully sold the company as a going concern preserving 150 jobs and avoiding a significant single asset real estate situation.  The secured lender was fully paid out of the principal in the transaction.  Unsecured received a 30% recovery. The operation doubled sales in the following three years and became the leading steel fabricator in the southeast. 

 

 


 

Chapter 11 Advisory

 

M&A Advisory

 

The Company experienced significant pressure on operating profit margins due to aggressive product pricing strategies pursued to capture market share. Originated and provided operational and financial consulting services to this   $125,000,000 upholstery manufacturing, based in North Carolina.  Advised the Company through Chapter 11 planning, secured a DIP credit facility. Guided the Company into Chapter 11.  Engaged as financial advisor for the sale of the Company.  

 

The Company was successfully sold in Chapter 11 to a larger strategic buyer preserving all jobs and fully paying out the secured lender.  Unsecured received an estimated 30% recovery.

 

 

Chapter 11 Advisory

 

M&A Advisory

 

Valuation

 

Litigation Support

 

The hockey team encountered financial operating pressures due to both on and off ice expenses.  Provided crisis management consulting services to this sports franchise. Conducted a valuation of the franchise, due diligence for the DIP financing and provided analysis and expert witness testimony for the restructure of the lease agreement between the team and the Civic Arena Authority for the Civic Arena in Chapter 11. 

 

Testimony resulted in the severance of the lease and allowed the restructure of the team and provide for a distribution to the unsecured. 

 

Litigation Support

 

Valuation Analysis

 

Forensic Analysis

 

The company began to react to the shifting markets in textiles several years earlier but did not move quickly enough and eventually would enter Chapter 11 and subsequently Chapter 7.  Engaged as expert witness providing Damage Calculations and Expert Witness Testimony for the Chapter 7 Trustee currently in litigation involving the former board of directors.  Reconstructed the financial statements after several years of inactivity to assess the unexpected and rapid shutdown of the Company.  Developed a complex cash-forecast and liquidation analysis to develop and support the damage claims for the litigation.

 

Extensive negotiation and depositions were conducted. Settlement was reached one hour before scheduled testimony in the trial resulting in $2,500,000 for the estate.

 


 

 

 

Washington Furniture Manufacturing Company

Interim Management

 

Liquidation

 

M&A Advisory

 

Faced with three years of continued losses and issues in the marketing efforts, the lender recommended the appointment of interim crisis management to affect a change in direction. Appointed CEO to manage $150 Million furniture Company headquartered in Mississippi operating six plants in two states.  Managed the Company through a liquidating Chapter 11, reducing operations to remaining profitable segment.  Built out raw material inventory creating a sale through plan for the Company.  Developed a targeted marketing plan to sell the finished goods inventory into the market.  Successfully executed a controlled liquidation resulting in high recoveries for the M&E, inventory and other assets through innovative liquidation methods.

 

Successfully paid out both the secured lender and paid all medical claims impacting the employees.  The unsecured received a small recovery in the case.

Interim Management

 

M&A Advisory

 

Debt Restructuring

 

The company encountered significant marketing issues resulting in a drop in revenue.  The owners decided to seek a change in management and employ a team of turnaround specialists.   Engaged to provide interim management of the company. Instituted new sales and logistics procedures to improve profitability.  Developed new packaging initiatives to enhance product value.    Focused sales efforts toward the government market and successfully obtained a significant contract that provided the base order for the return to improved cash flow.  Negotiated with key vendors to continue shipping pending the anticipated sale of the Company. In addition, conducted the corporate finance advisory work required to complete the sale of the Company to a strategic buyer.

 

The Company was sold resulting in the payout of the secured lender with no loss of jobs.   Unsecured trade creditors maintained their current level.  The company avoided Chapter 11 proceedings.

 


 

 

 

GFT, Inc

 

 

 

Chapter 11 Trustee

 

M&A Advisory

Forensic Analysis

 

 

 

A greenfield fiberglass plant was constructed through a project financing that encountered significant design and startup issues. A second group acquired the facility and ran out of funding and filed Chapter 11.  J. Ruane was appointed trustee for the operation that had been shutdown three years previously, to determine if the Company could be restarted or sold. Conducting significant negotiations with unsecured and priority claimants were critical.  The site contained 4.5 million pounds of chemicals, and the removal of approximately 70,000 pounds of hazardous materials including nuclear tracing elements was required.  The restructure involved a complex settlement among the taxing authorities, the secured lender, the unsecured creditors and the buyer of the facility, PPG. 

 

Successfully managed the removal of the material from the facility.  Addressed the operational production issues at the facility.  Successfully sold the facility to PPG.  The result was the restart of the facility after extensive reconstruction and the creation of 600 jobs in the poorest county of South Carolina.  Negotiated sale of the Company resulting in a 70% recovery to the secured lender who wrote off 100% of the loan three years before.  The unsecured received a negotiated recovery percentage of 25% through negotiations.

 

Constructive Trustee

 

M&A Advisory

 

Liquidation

 

Forensic Analysis

 

 

Provided operational management and to preserve the assets of several operating entities including a Winston Cup and Busch NASCAR Racing Teams, a real estate Development Company, and a theme restaurant. 

 

The companies were successfully operated and sold over a period of four months resulting in a 100% payout to the secured lender.  The   investigation of various transitions provided evidence to the Chapter 7 Trustee, which resulted in one criminal conviction.

 


 

 

 

Restructuring Advisory

 

The company provided complex rigging solutions targeted toward the manufacturing industries.  With the downturn in capital expenditures in their core markets the company-faced cash flow compression and problems concerning debt service.  Usually maintained 6 to 10 large projects with a Teamster Union labour force throughout the company.  Engaged to negotiate a lump sum debt settlement agreement with a secured lender while maintaining stability on the projects and producing the cash settlement amount required for the transaction.  Develop a liquidation analysis to support the negotiation position to induce the lender to take the settlement offer. 

 

Developed a comprehensive negotiation memorandum and communication strategy for distribution.  Conducted the negotiation with the lenders reaching an agreement.  Achieved a negotiated settlement of 20% of the secured debt.

Bell Harrison & Co

 

 

Chapter 11 Advisory

 

Liquidation Management

 

 

 

Faced with the total destruction of the company’s largest store due to fire and plagued by significant changes in the tailored men’s clothing market a comprehensive operational analysis had to be conducted and a survival strategy developed. We conducted a comprehensive operational analysis and developed a solid plan of action.  We developed and executed a plan to keep the company out of Chapter 11, which would involve a negotiation with remaining landlords stabilizing the unsecured creditors and execution of a going-out-of-business strategy to reduce debt.

 

The company repaid the bank in full though a going-out-of-business sale conducted outside Chapter 11.  We were successful in negotiating with the unsecured creditors and stabilizing them during the process. The company went into Chapter 7 to allow litigation to pursue the collection of the business interpretation insurance for the benefit of the unsecured creditors.

 

 

 

AAA Inc.

Chapter 11 Trustee

 

Forensic Analysis

 

After litigation pressure by investors for the lack of both principal and interest payments the appointment of a Chapter 11 trustee was sought.  Appointed Chapter 11 Trustee to provide operational management to an alarm-monitoring Company, and assumed position of general partner for seven Limited Investment Partnerships investing in alarm accounts.  Conducted an analysis of the interaction between the partnerships to determine the extent of the fraud in this complex ponzi structure.  Approximately 120 elderly investors lost $15,000,000 in funds in this scheme.  Conducted forensic analysis successfully tracing diverted funds to Mexico and the Cayman Islands involving an international securities fraud.

 

Successfully operated the business through sale to a diversified electric utility recovering a full payout for the secured lenders and a significant payout to the unsecured.

 

 

M&A Advisory

 

Engaged to sell the company that had supported several losing affiliates for five years.  The company produced both specialized products targeting niche markets and commodity based items. A detailed memorandum was developed and the marketing of the company ensued.

 

We were successful in selling the company to a strategic buyer in a related industry for a price acceptable to the investors and the secured lenders. 

 

 

 

Financial Advisory

 

Under financial pressure for several years the Company sought protection in Chapter 11.  Engaged to provide financial advisory services to the Company in Chapter 11.

 

 

 

Successfully provided the advisory services to the Company and emerged with a plan of reorganization providing a solid pay-out to the unsecured creditors.

 

 

 

 

 

Marketing

 

Engaged to develop and assist in the execution of a comprehensive marketing targeted toward public utility, telecommunication and energy markets.  Calling on senior executives in the industry and establish relationships was the objective. Conduct highly focused call effort with a small technical group of Xerox executives.

 

During the first month of calling three proposals were provided to high profile utility prospect.

 

Chapter 11 Advisory

 

Engaged to develop a strategy to keep both companies out of Chapter 11 and minimize the impact of vendor and secured lenders on the company.  Restructure the existing debit and seek new lenders for both companies were the first step.

 

We obtained a financing commitment from an asset-based lender and an agreement with the unsecured trade.  Despite several years of losses we were able to obtain a new asset based credit facility.  The existing lender provides a term loan for the expansion of the furnishing facility.

 

 

 

 

Valuation

 

Operational Assessment

 

 

Conduct an operational analysis and valuation for NationsBank Trust Department who had the controlling interest in the company through the family estate.  Engaged to conduct an operation analysis and valuation to determine the value of the company for estate tax purposes.  Developed a comprehensive operational assessment for on-going management and determined the value of the company.

 

The operational assessment and valuation of the company were developed and well received by the bank.  Both reports enabled the trust department to better understand the risks associated with the operations and help establish a value of the company for estate tax purposes.

Operational Consulting

 

Chapter 11 Advisory

 

Provided operational consulting to Burger King International concerning logistics and financial issues in dealing with Ameriserve, the company’s primary food provider.  Food shortages and outages occurred in Northern California during the company’s Pokomon promotion.  Ameriserve was in a financially unstable position due to rapid expansion and poor integration of new software operating systems. 

 

Advised the Company to establish bonded warehouses inside the Ameriserve warehouse operations to preserve control the promotional material.  Provided additional solutions to logistics issues to maintain operations.  Assisted in providing financial analysis on Ameriserve’s current financial position to develop a Chapter 11 strategy.

 

 


 

Carolina Leasing and nine related companies

 

Chapter 11 Trustee

 

Forensic Analysis

 

Liquidation

 

Litigation Support

 

Chapter 11 Trustee appointed for the operational management - involved in leasing, equipment finance, factoring, Buy-Here Pay-Here auto sales and note financing, long haul and short haul trucking, auto transport operation, auto sales car lots and real estate development.  Substantive consolidation was pursued to obtain control of all related debtor companies The companies operated throughout the Southeast.  Successfully managed the operations selling profitable portions, shutting down the unprofitable segments and liquidating those areas of the business where the maximum value could be obtained for the secured and unsecured creditors.  The case was the largest bankruptcy in the history of South Carolina at that time and based on our research and involvement with the Justice Department resulted in two criminal convictions. 

 

Managed the portfolios to natural liquidation due to Reg “Z” issues in the formation of the paper

 iCarbon

Operational Analysis

 

Restructure Strategy

 

Faced with a cash flow squeeze as a result of a broad acquisition and development strategy equity investors required the assessment of the business.  Provided operational and financial assessment of iCarbon, an international graphite mining company with operations in the United States, Canada, China and Madagascar. Developed the strategy to recover the unsecured loan made by a British private equity fund through an asset acquisition settlement agreement for the Canadian mining properties.  Conducted full inspection of the global operations with management.

 

The strategy was successfully executed resulting in the formation of a new company obtaining the Canadian operations as a settlement with iCarbon.

 

Smith Coal Company

 

Operational Management

 

Provided interim management after the seizure of the company assets by the lending group for an international coal brokerage operation, Smith Coal based in Birmingham, Alabama with loading facilities in Mobile, Alabama and New Orleans, Louisiana.  Managed the coal brokerage operation selling coal inventory located on three ports in the Gulf regions.

 

Successfully marketed the coal to several international buyers over a four-month period.  Supervised the loading of the ships at the various ports in the Southeast.  Successfully paid out the bank through the sale of the coal and through insurance proceeds.

 
 

Discussion of Representative Transactions