NATURE OF ASSIGNMENT:
Primary: Company Services / CEO
Primary Industry: Leisure & Service
Company: The Company owned and operated 46 hotels.
Situation: Company was in bankruptcy with very little cash, tire/rundown hotels, no DIP financing and was facing many lawsuits regarding sale of the company to an entity which was financed by another bankrupt hotel company - Prime Hospitality. Company was being managed by Prime Hospitality who withdrew their management team when the company filed Chapter 11. There was very low employee morale and very little expectation that the company would survive.
Focus Scope: A Focus Professional was engaged by the company to act as CEO and maximize returns to all stakeholders in the company.
Tasks Performed: A Focus Professional developed a business plan, retained key employees and recruited new management team members. Sufficient cash flow was created to keep operating while in bankruptcy and outstanding IRS issues were resolved. Ultimately, the Focus Professional negotiated settlement litigation between company and Prime Hospitality.
Results: All major issues were resolved and Company emerged from Chapter 11 proceedings as an American Stock Exchange listed company. Stock price moved from $3.00 to $15.00 while a Focus Professional acted as CEO post Chapter 11, which provided excellent recoveries to stakeholders.