Inglewood Completes the Receivership Asset Sale of Arrow Machine

When Arrow Machine lost a major customer, it could not cut costs or grow revenue fast enough to fill the gap. The company agreed to be placed under receivership, and Inglewood stepped in to stabilize the business and lead the receivership asset sale to its close.

The company and the challenge

Arrow Machine is a $15 million revenue manufacturer of screw machine, HydroMat and CNC parts for the automotive and other industries. The loss of a single major customer left the business without enough volume to support its cost structure, and management was unable to compensate quickly enough. Receivership became the path to protect creditors and preserve value.

What Inglewood did

Acting through its receivership services practice, Inglewood took operational control and worked the case from stabilization through sale. The engagement included:

• Resolved various pre-existing issues with customers;
• Researched transactions that took place prior to the receivership;
• Ran the operations, dealing with several quality control issues;
• Negotiated the resolution of several machines that were in progress of being built;
• Sought recovery of assets;
• Dealt with numerous secured and unsecured creditors; and
• Negotiated and closed the sale of the operating assets of the business.

The outcome

By keeping the plant running while the process played out, Inglewood held the operating assets together and negotiated a sale that closed on the business. Running a distressed manufacturer through receivership takes the same discipline as any turnaround: control the operations, deal squarely with creditors, and drive the process to a clean close.