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Successful Plan of Reorganization of an Ethanol Producer

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

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Home·Successful Plan of Reorganization of an Ethanol Producer

The Situation

Ethanol Plants. $75 million in sales. $140 million debt. Three plants in three states and three intertwined Chapter 11 cases.

  • Unfinished Idaho plant with numerous mechanics’ liens.
  • Protect the profitable Wyoming plant and marketing distribution business while maintaining a stable corn supply and customer base.
  • Three bank groups are at odds with each other, including separate counsel, all of which are adversarial to the London owners.
  • Complexity of absent UK owners in a small Wyoming Bankruptcy Court filled with New York attorneys representing the stakeholders.
  • First-day motion on consensual DIP financing finally approved after 60 days.

How We Advised

Our experts were engaged as the Chief Restructuring Officer to manage the bankruptcy process.

  • Increased good ethanol yield at the Wyoming plant with the introduction of chlorine to mitigate infection issues.
  • Renegotiated critical corn contracts.
  • Terminated UK management and their excess /no value costs.
  • Cost reductions on rent and accounting services.
  • Profitable Wyoming plant and marketing distribution business with confirmed Plan of Reorganization, saving 50 jobs.
  • Three bank groups are now the new owners of a profitable business.
  • One of the few ethanol businesses emerging profitably from Bankruptcy.
  • Idaho plant assets were transferred to mechanics’ lien holders.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

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. 

 

> Chief Restructuring Officer (CRO) and Interim Management Services 
Our experienced C-suite interim executives advise and support companies in financial distress, experiencing hypergrowth, or that are challenged by critical vacancies among senior leadership. Whether the leadership void results from operating challenges, a recent officer resignation, the need for added support during busy periods, or during an extended job search for the right permanent hire, our experienced executives provide immediate relief and value. 

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