The Company, a Korean based Company with annual revenue of approximately $0.8 billion, filed for bankruptcy and submitted a pre-arranged sale and reorganization plan which provided no return to unsecured creditors. An ABS professional acted as financial advisor to the unsecured creditors’ committee (the “Committee”).
The Committee submitted a completed plan which was approved by the court after a dispute with the Company and its secured lender. The plan included a rights offering and reinstatement of existing secured debt (“cram-up”). Two expert reports were prepared: the first advocated a termination of exclusivity and the second supported a reinstatement of the secured debt in support of the Committee’s plan. The Committee’s plan increased creditor returns exponentially as the Company raised substantial capital post confirmation through a high yield debt offering and IPO.
Three Five Systems, Inc.
A NYSE listed electronics concern, with substantial holdings in Asia, faced continued operating losses resulting in diminishing liquidity. An ABS professional served as an interim CFO to assist the Board in evaluating strategic options.
A complete strategic plan review was undertaken investigating both revenue enhancement and cost reduction opportunities. This review determined a sale of all assets through bankruptcy would yield the highest value to stakeholders and was the course implemented.
The Estate of the Company (prior to bankruptcy was a $3.0 billion computer distributor and servicer) was pursuing approximately $30 million in preference actions against major corporations including Dell Computer. An ABS professional served as a solvency expert for the Estate.
Testified as an expert witness on solvency and as a result, the matter settled on favorable terms shortly after trial.
This $1.0 billion international manufacturer of telecommunications equipment had obsolete and disparate information systems. An ABS professional assisted the Company in selecting, performing cost benefit analysis, and implementing a new information system.
Substantial cost savings were identified during the course of this analysis and SAP was selected for implementation across all business units. SAP was implemented with minimal business interruption.
The Plaintiff, a start-up company alleged damages due to an alleged breach of contract against Telxon related to discussions with a potential partner in developing technology to be used in the retail shopping industry.
An ABS professional was part of a team that analyzed the Plaintiff company’s technology and competing technologies, determined the extent of alleged delay damages and prepared a model with cash flow projections to help defend against the Plaintiff’s claims.
Private Electronic Service Company
An electronics service company incurred a sudden loss and turned to its lender for turnaround financing. The lender hired an ABS professional to determine the viability of the company.
The viability study showed the company was financially compromised, and unlikely to succeed. As a result, the lender was able to maximize its recovery through an orderly wind-down of the company.
Private Defense Contractor
A rapidly growing defense contractor needed project management assistance to oversee large new customer orders, especially in the area of vendor management. An ABS professional was engaged to design a program to monitor vendor requirements and deliveries.
A program was developed to coordinate the many components of the product with the necessary vendor lead times and internal production needs. The company was then able to accomplish very rapid growth by responding to a very short window of opportunity.