Successful Receivership for Marketing Company
Jumping to the end of this story, this was a very successful receivership in which all creditors filing proofs of claim were paid in full, with interest, and in which the original owner was returned assets of nearly $3 million.
The story began several years ago when a print media company spun off certain technologies into a company funded by outside investors while retaining partial ownership. Inglewood provided the valuation upon which the transaction was based. Then, the owner asked Inglewood to assess the viability of remaining business. Given the level of debt that the print media owed and its limited future prospects, Inglewood recommended the closure of the business.
Inglewood assisted in the liquidation of the print media business and then an Inglewood principal was appointed receiver for the partial ownership in the spun off technology company. At the beginning of the receivership, the retained ownership had a negligible fair value and, if sold, would have resulted in little to no payout to the creditors. The Inglewood principal also was appointed to and actively participated in the board of the company holding the spun off technology.
Recently, the company holding the spun off technology sold itself for cash and convertible notes. The distributed cash to the receivership was sufficient to pay all of the creditors filing proofs of claim in full, with interest. The remaining cash and the rights to the convertible notes were returned to the original owner and, again, total nearly $3 million.
The original owner described the work performed as "truly life changing". He further stated, "I am extremely grateful, blessed and happy that our paths crossed. Your cautious optimism was critical to me staying sane through the process."