Case Studies

Sale of Trucker and Out-of-Court Wind-down of Estate

J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response

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Home·Sale of Trucker and Out-of-Court Wind-down of Estate

The Situation

Regional long-haul trucker company covering 15 states. $200 million revenue. $20 million debt.

  • The company was losing $8 million annually, the secured lender was demanding an exit, and tractor lessors had started repossessing vehicles.
  • The company’s service area was greater than it could effectively service.
  • Tractor and driver utilization were very poor.
  • Tractor maintenance and uptime were serious problems.
  • Pricing was inadequate and below market, with the cost structure being too high.
  • Immediate Chapter 11 seemed to be the only option.

How We Advised

Our team was hired as CRO.

  • Quickly developed a turnaround plan to reduce service area, cut fleet size/return leased assets, increase prices, cut costs, and refinance out secured lender.
  • Developed a cash forecast to provide partial payments to lessors to give the turnaround plan time to work.
  • Got secured lender and major lessors buy-in, and secured lender refinance.
  • One-third of leased assets returned
  • The company was sold without the need for a bankruptcy filing
  • A new secured lender was fully paid, with significant recovery by unsecured creditors

Related Practice Areas

> Out-of-Court Wind-downs 
We deliver strategic guidance through the wind-down of business operations or underperforming assets, helping preserve value and reputation while avoiding the disruption, cost, and public scrutiny of formal bankruptcy. Our expert financial and operational advisors apply decades of experience providing exit solutions across a wide range of industries and complexities to deliver, and often execute, comprehensive solutions for distressed businesses. 

 

> 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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