January 8, 2020
Inglewood Appointed Receiver for Steel Fabricator, Resolves Litigation, Pays Creditors in Full and Returns Business to Owner.
When Boardman Steel Fabricators, Inc. was faced with a significant judgment, the garnishing of its bank accounts and an inability to pay its bills, Inglewood was appointed by the court as receiver for the company. Inglewood immediately implemented cash flow controls and forecasting to assist in the paying of bills that came due during the receivership based solely on incoming cash receipts.
Then, Inglewood entered into negotiations with the holder of the judgment and was able to obtain a settlement at an over 40% reduction in the original amount of the judgment. Inglewood next ran a proof of claim process in order to determine the extent of existing liabilities and flush out any unrecorded potential liabilities. As part of this process, Inglewood was able to obtain several favorable resolutions of vendor disputes.
Assessing the amount of liabilities verified through the proof of claim process and the projected cash flows, Inglewood worked with the owner in developing a plan to pay all of the creditors in full based on the company’s cash flows augmented by a loan by the owner. This plan was approved by the court and implemented.
Upon the completion of the plan, the control of the company was returned to the owner free and clear of all liabilities pre-dating the receivership.
David Deibel, Boardman's owner, said, "As a result of Inglewood’s patient and professional work, all of the vendors have been paid in full, my business is thriving and Boardman Steel is positioned to service this area’s steel fabricating needs for many years to come."