Valor Leadership Partners
Home Valor Professionals Professional Services Industries Served Contact Us
Valor Leadership Partners is a member of the Turnaround Management Association.

Manufacturing -- Steel Fabrication

Wind down and sale of Business

A local attorney introduced us to the shareholders of a steel fabrication company located in North Carolina. The purpose of the initial engagement was to assess the viability of the business and then advise the shareholders of their options. It was quickly determined that the business was not viable and after considering various options, the engagement was extended by the shareholders to begin winding down the business by completing existing contracts while concurrently attempting to sell the business as a going concern. An out of court settlement was planned for the company's unsecured creditors. The lender was advised of this approach and brought into the process, being provided with weekly updates of cash and collateral position.

All of the company' contracts were reviewed to determine which ones would generate positive cash for the company and also with a view to maximizing the collection of existing progress receivables. A thirteen week rolling cash forecast was prepared and all purchases relating to the completion of contracts as well as staffing and expense levels were carefully scrutinized before approval.

A process was undertaken to solicit a large number of strategic buyers in the southeast. One of those contacted made an offer that was acceptable to both the shareholders and the secured lender. As there was real estate involved, a phase one survey was undertaken that determined that environmental cleanup was required in several areas of the property which was undertaken and successfully completed.

At the conclusion of the engagement, the secured lender was paid in full, the environmental issues were resolved, the real estate which was owned personally by one of the shareholders was leased with an option to buy to the purchaser of the business, equipment and remaining inventory, the shareholders were relieved of their personal guarantees and the unsecured creditors received a small distribution. Because of the manner in which the business was wound down approximately 95% of the accounts receivable were collected. These proceeds completely funded the wind down, environmental clean up an professional fees leaving a small balance to be distributed to the unsecured creditors.

 

 

 

Using platinum watchcase and fake rolex bracelet, with white dial, inconspicuous but if replica watches carefully watched but addictive. Equipped with Patek Philippe 324 S IRM QA LU movement, the fake rolex watches thickness of 5.32 mm, composed of 335 parts, providing a maximum of uk replica watches 45 hours of power reserves. Drop shaped special link bracelet, memorable.