Published on October 29, 2020
After discovering a $10+ million over-advance on a borrower’s line of credit, a bank retained Stapleton Group as its Financial Advisor to investigate, and then to help optimize its financial recovery.
The borrower was a 45-year old, family-owned food wholesaler serving national accounts from operations in multiple states. Its liquidity problems started after installing a new ERP/Inventory Management System.
At the time of our engagement, the company had exhausted its credit facility, its operations were severely deteriorated and it had entered an Assignment for the Benefit of Creditors (ABC).
Forecasted Recovery for Bank was 32-35%
As the bank’s financial advisor, Stapleton delivered the following services to achieve a full-recovery for the bank, instead of the forecasted 32% – 53%:
- Conducted forensic analyses of major changes in company’s borrowing base.
- Analyzed and quantified potential orderly and forced liquidation options.
- Represented bank’s best interests in developing a strategic plan to liquidate guarantors’ real estate assets to repay loan.
- Monitored bank’s collateral throughout the liquidation process.
- Advised the bank and its counsel during going-concern sale negotiations.
Like every engagement, this one had numerous obstacles.
Check out the full story here