Financial Advisor to Debtor in Possession in Bankruptcy for a Wholesale/Distributor of High End Automotive Accessories
This was a very challenging situation where the owner had committed suicide and his disinherited sons were operating a competing business. Prior to this once $46 million company filing for bankruptcy protection, the company's bank was pushing to have Inglewood appointed as receiver. After the company filed for bankruptcy protection, the company engaged Inglewood as its financial advisor. At the start of this bankruptcy, there was significant animosity and mistrust between the bank and the company. The company was unable to close its books within three months of month end, the company had significant amounts of excess inventory and there were major estate issues and litigation all of which provided significant distraction. Inglewood quickly gained the confidence of the bank and helped the company personnel understand the need to work with the bank. The company ultimately was able to close its books in less than 20 days after month end and was able to quantify the risks and opportunities existing in the inventory allowing the company to devise a strategy that provided comfort to the bank. Inglewood proposed the transaction structure which became the foundation for the plan of reorganization. The relationship with the bank was improved dramatically, such that the bank agreed to provide a three year term loan to the emerged entity. The vote for the plan of reorganization was unanimously in favor and all creditors, secured and unsecured, were paid in full.