Accounting and Finance Consulting to Public and Private Enterprises
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Served as court approved Chief Restructuring Officer, for an Oil and Gas Exploration and Production Company (“Odyssey Petroleum Corporation”) located in Jackson, Mississippi, that had filed for protection from creditors (Chapter 11). Odyssey is a wholly owned operating company of Petrichor Energy Inc. (a Toronto Stock Exchange registrant with symbol “PTP”). Analyzed the underlying business and concluded that based on the productive assets in the field and other relevant factors, that the business model was not sustainable without a significant capital infusion.
Substantially all of the operating assets of the Company were sold in a Section 363 sale resulting in sufficient funds to pay all unsecured creditor 100% of their original claim as well as a 10% premium to cover potential administrative expense claims resulting in more than $4.0 MM being paid toward the equity claim. The Federal judge hearing the case was complimentary to the plan, and mentioned that during his 20+ years as a practicing bankruptcy attorney and the five years as a Federal Bankruptcy Judge, he had only been involved in two cases that succeeded in returning funds to the equity claim.
Product Services, Financial Services and Commercial Real Estate Companies
Served as interim Divisional V-P Finance for DT Industries Inc. (NASDAQ registrant with symbol “DTI”), as a result of both financial and operational reporting problems identified by their public accountants, which resulted in the filing for protection under Chapter 11. My role included responsibility for financial forecasting and reporting for the six companies in the Packaging Division ($75 MM in annual volume), which comprised of three domestic and three international facilities. Traveled extensively to Canada and Europe to ensure their timely financial reporting and was instrumental in developing and instituting a cash forecasting methodology to accurately predict the cash requirements of the division, during the critical refinancing phase.
Served in the role of Chief Restructuring Officer, for a privately held, Cleveland based precision manufacturer. The Company had recently constructed a new facility that required substantial increases in sales volume to support the related costs. Due to market conditions, the volume never materialized resulting in a default on the secured financing. Based on financial projections and intensive cash flow management, the Company was able to comply with the Forbearance Agreements which resulted in a majority of the debt being repaid while securing the release of the personal guarantees by the principals.
Served as an Expert Witness for the Plaintiff, in a lawsuit, resulting from an early failure of a highly leveraged acquisition. Analyzed the transaction in light of the projected results and determined based on several significant factors that the transaction was overly leveraged and that the seller (a publicly held corporation whom also retained an ownership in the going forward entity) had withheld certain information that would have led the Buyer not complete the transaction. Our testimony served as the most significant witness for the plaintiff. The case emanated from a Chapter 11 filing and was ultimately heard by a jury. A decision in support of the plaintiff was rendered for a majority of the claimed amount.
Assisted the court appointed financial advisor to General Industries Inc., a manufacturing concern with sales in excess of $100 MM through all aspects of a successful Chapter 11 reorganization. Analyzed the Company’s businesses and developed a plan to spin off certain operations and close others with the goal of generating sufficient funds to fully satisfy the secured lender and provide an acceptable realization for the remaining creditor groups. Assisted in the establishment of a new automated accounting system and developed management reports to highlight operational inefficiencies for subsequent corrective action. Worked with potential lenders to secure $17 MM in senior and mezzanine financing, enabling the remainder of the Company’s operations to emerge from bankruptcy.
Served as Vice-President Operations for a privately held manufacturer of specialized water treatment systems. Through analysis of the existing business and complement of personnel, we advised company to develop a line of standardized products to ensure a more stable factory throughput. Adoption of recommendations was instrumental in eliminating negative financial results over an 18-month period.
Performed "Viability Review" on a manufacturer of custom assemblies for their secured lender. Report was used to determine whether to continue funding operations or pursue foreclosure of operating assets. Lender implemented recommendations contained in the report, resulting in full realization on the loan.
Prepared a "Business Valuation" on a glass recycling business, recommending to owners to decline the offer to purchase, which had tentatively been agreed upon. Introduced owners to investment banking firm resulting in a selling price of 200% over the initial offer.
Plants and Manufacturing Companies
Appointed by the secured lender to analyze and manage the sale and wind down of a borrowers business. The initial analysis of the portfolio projected a shortfall to the lender if certain metrics were not met in the sale process. Based on extensive oversight of management during the sale of the business and post sale wind down process, the Secured Creditor write down on the loan was significantly lower than the initial estimate by the bank.
Served as court approved Chief Operating Officer, for a group of three privately held and related entities, that simultaneously filed for protection from creditors (Chapter 11). Analyzed the underlying business and concluded that based on market conditions and other relevant factors, that the business model was not sustainable. As a result of the analysis, I negotiated agreements with the lead secured lender (Lehman Brothers Holdings) to compromise their debt to enable a payout to lower priority creditors in an effort to achieve a confirmable plan of reorganization. The Federal judge hearing the case was complimentary to the plan, indicating during the confirmation hearing that the outcome of the case far exceeded her expectations and the anticipated payments to the unsecured creditors represented a huge victory to the creditors in light of the case’s prospects when it was originally filed.
Served as interim Chief Financial Officer for International Total Services, Inc. (NASDAQ registrant with symbol “ITS”) as a result of the former CFO's resignation within two weeks of the Company’s year-end. I was responsible for completing the financial statements for the fiscal year and managing the external audit process. My role included responsibility for all external financial reporting 10-K’s and 10-Q’s, implementation and testing of a new reporting system and negotiation of modifications to the debt facilities with the secured lenders.
Served as interim Chief Financial Officer for a Stamford CT. based satellite television network system, which filed for protection from creditors (Chapter 11). My responsibilities included all external financial reporting (to bankruptcy court, investors and other creditor groups). Worked extensively with external billing service to ensure proper invoicing was achieved during post petition period and extensively managed the collections process to ensure that targets within the DIP financing projections were achieved.
Responsible for development of all financial information and drafting the financial disclosures for the initial public offering prospectus for a $100 MM operating division of Progressive Insurance Company (NYSE symbol “PGR”), a Fortune 500 company.
Served as interim Restructuring Officer for company operating in three distinct business having $40 MM in sales. Achieved significant concessions (over $4 MM) from both secured lenders and unsecured creditors in an out-of-court debt restructuring. Improved cash position by $2.2 MM over a 5-month period through intensive management of both inventories and receivables.
Served as Financial Advisor to a real estate developer in South Florida who developed a public parking facility with over 400 spaces and 35,000 sq. ft. of retail space. Prepared a long term (30 year) financial projection for the project including the initial financing period, construction period and operation of the parking deck, utilizing three various scenarios.
Appointed by the secured lender to analyze and manage the wind down of a commercial lease portfolio. The initial analysis of the portfolio projected a shortfall to the lender. Based on extensive management of the wind down along with restructuring of lease packages for refinancing by other institutions, the wind down resulted in a net recovery above the bank’s recorded reserves.