Receiver for Trucking Company
When this $40 million trucking concern lost a major contract representing 25% of its revenues, it was unable to either reduce overhead quickly enough or to add any notable business to offset the lost revenues. Given the company's secured lender's lack of confidence in management and the company's continuing operating losses, the owner agreed to engage Inglewood as a non-court appointed receiver to run the day-to-day operations as the interim COO. Inglewood assessed the situation, opened communication, and assisted the company's efforts toward the quick sale of the company as a going concern. Ultimately, Inglewood was appointed as a court appointed receiver in order to be able to sell the company to a new owner free and clear of existing liens. The Judge in the case specifically expressed his appreciation for Inglewood's report that helped him understand that this was the best route for the company and that all stakeholders were being treated fairly. The proceeds from the sale totaled approximately 75% of the outstanding balances due to the secured lender. While the unsecured creditors did not receive any payments, there is a good prospect that the unsecured creditors will recover their losses by continuing to do business with the company. Remarkably, all of the employees retained their jobs.
Advisor on Property Sale - Separate from the receivership, the sale of the company's operating facility had been languishing for at least three months with little movement forward. One of the participants finally approached Inglewood to get involved to help close the transaction. Inglewood calmed the significant animosity that existed amongst the parties, identified and proposed resolutions for the remaining issues, obtained concurrence from all parties and successfully brought the transaction to a close. After learning about Inglewood's involvement in the real estate sale, the bank workout officer, who had been working on this piece of the transaction for over 3 months, stated that they were no longer worried about the transaction because they knew Inglewood would take care of everything. The call for Inglewood's assistance came on a Tuesday and the closing took place on the immediately following Friday, three days later.