Small Business Restructuring

Served as a Consultant to the President of a $13.0 million contract manufacturer of steel assembly parts with a proprietary product line of oil field products. The company had lost $2.2 million year-to-date, owed vendors $1.6 million, had accounts receivable of $900 thousand and a significant backlog of items with missed ship dates. Implemented a production schedule to build out WIP to catch up with the backlog schedule, established a payment schedule with vendors and implemented a COD program to stay current on all purchases to secure the confidence of the vendors, pushed excess and slow moving inventory into the market, increased productivity, implemented a 12-week rolling cash flow and reporting plan, kept secured debt current and returned the company to stable operating condition in six months.

Served as Consultant to the Board of Directors and President of a $11.0 million steel service center and steel scrap processor. Coordinated the company’s relationship with its secured lender throughout the process of moving the credit to an asset based lender. Developed and implemented a strategy to sell the scrap processing division to a strategic buyer, which significantly improved EBITDA and allowed the line of credit to be moved.

Engaged as Interim General Manager to coordinate the disposition of a $3.5 million specialty machine shop serving the steel plate roll and oil field service industries. Developed a prospectus, solicited bids and negotiated a purchase agreement to sell the assets to a strategic buyer which continued to operate the business. Used the proceeds from the sale of assets to settle all litigation, negotiate a settlement of all payables and increased the recovery of the owners in excess of $600 thousand over the liquidation estimates.

Served as a Consultant to the President of a $5.5 million publishing company to restructure the company’s debt. The Company lost one-third of its revenue over the past five years due to a change of distribution in the limited prints market, and the inventory was significantly overvalued. The inventory was appraised for fifteen percent of its gross book value. The Company had a $2.0 million line of credit with a NY Bank. Due to the inventory appraisal, the line of credit was re negotiated yielding $1.25 million of debt forgiveness of the credit line. The Company’s largest unsecured creditor issued a credit for half of its $500 thousand debt for $250 thousand forgiveness of debt. The sub debt holders were convinced to convert their sub debt to warrants, which reduced the debt another $ 495 thousand. Resulting in total debt forgiveness income of $2.245 million. The Company had Net Operating Loss carry forward credits to offset the debt forgiveness income.

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 million of work-in-process for original contract value, reduced the personally guaranteed debt of the venture capitalist from $3.0 million to $316 thousand, and closed the business after completing the Chapter 7 filing papers.