NATURE OF ASSIGNMENT:
Primary: Company Services / Financial Advisor to Debtor
Secondary: Company Services / Bank - Creditor Negotiations
Primary Industry: Automotive
Company: Automotive Quality Control & Inventory Management Provider
Situation: The company grew rapidly beyond the ability of the organizational infrastructure of people, internal business practices and systems to operate profitability. The inability to control costs offset the rapid increase in revenues.
Focus Scope: Focus was retained as Financial Advisor in planning its Chapter 11 filing, which included securing DIP financing and structuring an its Asset Purchase Agreement.
Tasks Performed: Focus provided support in all aspects of the bankruptcy case, including managing the bidding process for the 363 sale. Focus completed a number of key actions, including:
- Established Consensus: FMG met with management and obtained consensus that PSA must be sold quickly.
- Obtained Lender Support: FMG convinced the lender to fund the Company during insolvency proceedings.
- Retained Legal Counsel: FMG led the effort to obtain debtor’s legal counsel in both Canada and the US.
- Established Buyer Interest: FMG contacted potential buyers and established the platform for information flow.
- Managed Insolvency Proceedings: The FMG team developed the Company’s communication plan
- Negotiations with Potential Buyer: FMG selected the buyer of the debtor’s assets and negotiated the Asset Purchase Agreement with the successful stalking-horse bidder, moving the transaction along quickly.
Results: The lender received full loan payout on its original asset-based facility, no customer had a line shutdown and he acquirer is now a stronger player in the industry and has doubled its size.