Case Studies

Bankruptcy Advisory & Sale to Repay Lender

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

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The Situation

Convenience Stores and Bulk Oil Distribution. $75 Million Revenue. $25 Million Secured Debt.

  • The Company purchased an unprofitable company and was overleveraged.
  • The heating oil division was very unprofitable, and management had no plan to fix the business.
  • Unprofitable supplier distribution contracts.
  • Excess bulk operations and equipment.
  • Inventory control issues.
  • Filed for Chapter 11 without getting cooperation from its secured lender.
  • Attempted to negotiate a sale without professional assistance or providing adequate due diligence materials.

How We Advised

Our experts were retained by the secured lender to evaluate loan compliance and monitor the bankruptcy process

  • Determined that a company-led bankruptcy sale process was unlikely and advised the secured lender to prepare for a relief from stay to foreclose on all collateral.
  • As predicted, sale efforts fell through, and J.S. Held took over the business through a stay relief.
  • Immediately retained key employees, initiated an organized sale process, and marketed assets for sale.
  • Complete a system-wide inventory and accounting of all fuel inventory and negotiated sales of convenience store and card lock facilities.
  • Negotiated supplier agreement settlement and resolution of claims.
  • Sold all divisions, assets, and inventory over a four-month process.
  • Negotiated settlements and other claims to mitigate offset charges against the secured collateral.
  • Assisted with mediation and other litigation against secured lender.
  • Through the process, J.S. Held achieved a 100% payback on the secured debt for the lender.

Key Contact

Mark J. Welch, CPA, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 412 498 8258 
[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. 

 

> 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. 

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