Client:

$ 50 million Troubled Waste Management Firm

Client Opportunity or Challenge:

Combination of economy hammering the building sector and regulatory challenges that overwhelmed the resources to manage them combined to force company to wind down business with insufficient resources to satisfy all obligationsOutcomes

Role:

  • Assess true financial condition
  • Develop, present and negotiate wind-down plan with Bank and other creditors
  • Work with company to secure and negotiate company or asset sale to fund wind down

Outcomes or Benefits:

  • Successfully negotiated Letter of Intent for sale of assets
  • Presented sales plan and waterfall to bank for approval; bank approved structure in principle; Bank, key professionals and critical creditors would have received payouts to satisfy portions of obligations due.  Bank told us (regrettably for them) that they learned more about the company, the business dynamics and its markets in the first presentation we made than they understood when they underwrote the loan
  • Bank’s lawyer interfered with deal; Seller walked from transaction and most recent offer was for 8% of original agreed price
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