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Financial & Operations Advisory to UCC of Furniture Manufacturer in Chapter 11

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Home·Financial & Operations Advisory to UCC of Furniture Manufacturer in Chapter 11

The Situation

Manufacturer of oak and hardwood furniture. $19 million in sales. $13 million debt.

  • Following the Great Recession, company revenue fell from almost $40 million to $19 million.
  • During the same time period, operating income declined from $500K to a loss of over $2.0 million, and EBITDA fell from approximately $1.0 million to a negative $1.2 million.
  • The company filed for Chapter 11 bankruptcy to reorganize its business.

How We Advised

Our team acted as the financial and operations advisor for the Unsecured Creditors Committee (UCC).

  • We were retained to validate the company’s Plan of Reorganization and to determine the optimal strategy to maximize returns to unsecured creditors.
  • We determined that, due to market conditions, the company’s liquidation value was insufficient to cover the secured first position lien holders and the lender.
  • We developed a strategy to support the company's ongoing business on a CIA basis, while unsecured creditors received monthly payments to pay down old receivables or a one-time lump-sum settlement.
  • The company operated under the umbrella of a confirmed Chapter 11 Bankruptcy Plan and honored the terms of the unsecured creditors’ payout plan.

Related Practice Areas

> Bankruptcy Advisory 
Navigating bankruptcy is inherently complex, often involving struggling businesses, litigation, incomplete or inaccurate financial records, potential fraud, and other challenges, in addition to strict court-mandated processes. Our experienced team of turnaround and restructuring experts seamlessly guides clients throughout the process to optimize outcomes for lenders, creditors, shareholders, and employees. 

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

Key Contact

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