WFA was engaged by an absentee owner of FEMC to coordinate the disposition of a specialty machine shop, which served the steel plate roll and oil field service industry with annual sales of

$3.5 MM.  WFA developed a sales prospectus, solicited bids from strategic buyers and negotiated a $2.3 MM purchase agreement to sell the assets to a company, which continues to operate the business. The assignment included the oversight of the company, cash management, accounts receivable, accounts payable and vendor negotiation for settlement of past due accounts, negotiation and settlement of two law suits estimated at $568 M, allocation of purchase price for tax purposes, and coordination of the preparation of the financial statements and tax filings.

 

Finding a Buyer:

Using the break-even analysis and cash flow projections, WFA developed a prospectus and sent it to ten prospective strategic buyers using the owner’s requirement for a quick sale of the assets in 90 days.  The company received five offers to acquire the assets ranging from $1.5 MM to $2.75MM.   However, all buyers were told that the offer had to be all cash with no Phase II environmental study of the property.  The sale was consummated in 120 days after WFA’s engagement and all the employees were hired by the acquiring company.

 

Results:

Upon receipt of the proceeds from the sale of the assets, the property taxes were paid and the secured note was paid off.  WFA negotiated a settlement of two law suits which totaled $568 M for $368 M.  WFA also negotiated settlement with 19 vendors with open accounts of $85 M for $33 M.   By using the proceeds generated from selling the assets in place, FEMC was able to save the jobs, pay off the secured creditor, settle all law suits, resolve disputes with vendors and stay out of Bankruptcy.

 

Electro Welding Pressure Vessel Fabricator

 

Engaged as a Consultant to the CEO of a venture capital firm and took charge of the orderly liquidation of a pressure vessel manufacturing company and reorganized manufacturing; in two months increased labor efficiency from 45% to 80%; accomplished the rescheduled ship dates on contracts.  Negotiated with 16 major oil companies and engineering firms to sell $2.0 MM of work-in-process for original contract value, reduced the personally guaranteed debt of the venture capitalist from $3.0 MM to $316 M, and closed the business after completing the Chapter 7 filing papers.  All assets were sold and funds were dispersed to the creditors before filing Chapter 7.

 

Yellow Rose Corporation Plastic Bag Manufacturer

 

Engaged as a Consultant to the CEO to liquidate the assets of a $4.0 MM plastic bag manufacturing operation for the benefit of the creditors.  Developed a prospectus and circulated it to competitors and suppliers. It was determined that there was a general over capacity in the market and no buyers for the on-gong business were identified.  Hired an auctioneer to auction the equipment, collected the accounts receivable, paid monthly operating expenses and collected $458 M for the Secured Creditor.  All assets were sold and funds dispersed to creditors without filing bankruptcy.

 

Electrical Contractor

 

Engaged as a Consultant to the Owners of an Electrical Contractor to develop a Job-Cost-to-Complete for $8.0 MM of construction jobs in progress.  WFA was asked to determine the best case scenario for completing jobs or turning the jobs back to the General Contractor to complete.  The jobs were either completed or transferred to the general contractors to complete.  The owners worked with the bonding company to complete the bonded jobs.  The company did not file for bankruptcy.

 

Wholesaler of Hospital Medical Supplies

 

Engaged as a Consultant to the CEO of a Wholesale Medical Supplies distributor to coordinate the liquidation of the assets for the benefit of the creditors.  Sold $2.0 MM of medical supplies for $250 M and distributed the proceeds to the suppliers on a proportionate basis and closed the company.  The company did not file bankruptcy.

 

Natural Gas Retail Distribution Company

 

WFA was charged with the orderly closure of a $500 MM Retail Gas Distribution Company.  The Company served markets in Pennsylvania, Maryland and New York distributing natural gas to small retail and residential customers.  The company was formed as a joint venture between a large oil company and North East utility as a result of deregulation.  The Company’s headquarters were in Houston and the product trading group, customer billing and collection activities were located in Houston.  The backroom accounts receivable and collections activities were grossly out of control.  The joint venture partners lost their appetite to continue funding losses.  WFA negotiated settlement agreements with 71 suppliers who had outstanding invoices for $5.64 MM for $2.763 MM.  The Company was closed without a bankruptcy filing.

 

Universal Metals & Machinery

 

WFA was engaged to coordinate the relationship between the Company and its Asset Based Lender (ABL) during an orderly liquidation of the Company’s assets. Liquidated the assets of the Company and settled with the ABL for 61% of loan value.  The Company was closed without filing bankruptcy.