Challenge
As Chief Financial Officer/Chief Operating Officer, was tasked with the development of a plan to expand the hotel chain’s footprint in the face of stagnant to falling revenues resulting from growing competition from an unprecedented expansion in the lodging industry both from existing and new brands.

Action Taken
Immediately developed and initiated an expense reduction plan in order to conserve cash for necessary repairs, enhancements, and expanded marketing efforts. In conjunction with the foregoing efforts were made to raise expansion capital from the investment banking community.

Outcome
Although the company was not able to raise capital, successful efforts to bring its costs in line with revenues, led to the ultimate sale of the hotel company to a partnership between Wyndham Hotels and Trammell Crow, which subsequently went public.

Challenge
As advisor to and Chief Restructuring Officer for the steel casting company, analyzed the alternatives available to counter the negative impact of increased competition from Chinese mini-mills and increasing cost of scrap. Deteriorating cash flow had affected the company’s ability to remain current with its lenders and had seriously damaged its relationship and credibility with them.

Action Taken
An enhanced “real time” cash flow reporting process was developed in order strengthen management’s ability to forecast and to instill greater confidence with lenders. All eleven foundries were analyzed and a determination was made as to which ones needed to be shut down or sold. Numerous actions were taken to mitigate decreasing cash flow. However, in order to eliminate most “legacy costs” and to provide the company with the time and appropriate environment to effectuate the corrective strategy, the company filed for Chapter 11 bankruptcy.

Outcome
Certain foundries were shut down while a few were sold on a “one-off” basis to strategic buyers. The core business was focused within the operations of five of the larger foundries. The core business was ultimately sold to a “special situations” equity fund, and continues to operate profitably.

Insurance Company with operations in the western US:

Challenge
Was engaged as CEO and Chief Restructuring Officer immediately following the bankruptcy filing of the holding company for three insurance companies. Massive and undiversified investments in high risk real estate projects had rendered the insurance companies unable to meet their commitments to policy/annuity clients.

Action Taken
It was apparent that it would not be possible to reorganize the insurance group due to the nature of their investments and the numerous lawsuits and actions brought by State’s Attorney Generals and the Department of Justice. A plan was developed and implemented for the sale of the holding company’s assets, including the insurance companies.

Outcome
The majority of the company’s assets were sold, generating cash for the partial repayment of its publicly held bonds.

Telecom cabling design and installation company:

Challenge
Three months after the filing of bankruptcy, FINCO was engaged as Chief Restructuring Officer to determine whether a. the company could be reorganized and b. any acts of fraud or malfeasance had been committed since the filing of the bankruptcy.

Action Taken
In the first two weeks it became clear that the company was funding its significant losses with its debtor-in-possession financing which was about to run out. Immediately, expenses were reduced significantly and a new lender committed to provide the necessary funding to possibly allow the company to reorganize and exit bankruptcy.

Outcome
Due to the unreliability of financial information and the continued inappropriate actions taken by management, a quick and forced 363 sale of the company took place.

Adult incontinence product company with operations in the U.S. and Europe:

Challenge
As advisor to a group of lenders, was asked to provide analysis and guidance on how best to obtain repayment of its outstanding loans to this consumer products company. The company was severely damaged by an unsuccessful integration of an international acquisition, which had caused it to default on its debt.

Action Taken
Over the course of a few months the company’s operations were reviewed and a determination was made that the company was sound, but that the acquisition was ill-advised. The lenders were advised that the best course of action in order to obtain maximum recovery, was to forebear, not force a bankruptcy, and to have the company sold.

Outcome
The company was successfully sold and the lenders received repayment of most of their loans.

Seed producing and marketing company with global operations and a worldwide market share of 25%:

Challenge
As advisor to this global seed company was engaged to provide guidance to the company which was facing cash flow difficulties resulting from poor cash management and its appetite for acquisitions.

Action Taken
Within three days of being engaged a meeting with all creditors was held and a plan presented that gave the company three months to develop a longer term strategy for the repayment of its debt. The strategy developed called for a closer monitoring of its relationship with its suppliers, the sale of certain assets, and the rescheduling of its debt to its lenders.

Outcome
All of the steps in the strategy were implemented successfully. Bankruptcy and/or the foreclosure of assets were avoided. The publicly held company was subsequently sold, resulting in all creditors being repaid in full.