Situation Encountered Upon Engagement

The company was in Chapter 11, but had no CEO due to the company’s bank group enforcing their rights to remove the owner/ CEO. The bank group was funding the company pursuant to a 3 month, $12 million budget, designed for the purpose of quickly selling the company. The company had negative EBITDA and had over $100 million of debt despite sales of about $60 million.  The sale process was floundering.

Sues and Angart were hired about one month after the Chapter 11 as CEO and CFO, respectively.

Major Actions Taken by Sues & Angart

  1. Immediately got control over the cash situation. It was determined that the budget contained a substantial amount of unnecessary expenditures.  A new budget was prepared and controls and reporting put in place.
  2. Analyzed the company’s debt structure and restructured its leases. It was determined that the company could not be sold due to the existence of leases that encumbered asset values. A process was implemented to restructure the leases into debt, including facilitating a consensual agreement between the bank group and the various lessors, thereby freeing the assets of the company to be sold for the benefit of all creditors.
  3. Negotiated and consensually resolved over 50 contested matters with various creditors and other parties-in-interest.
  4. Sold the propane division pursuant to the Chapter 11 Section 363 sale process.
  5. Sold the parking lot division pursuant to the Chapter 11 Section 363 sale process.
  6. Developed the Chapter 11 Plan of Liquidation and conducted the confirmation process.

Key Results Obtained by Sues & Angart

  1. Saved over $7 million of cash; expended just $4.5 million of the $12 million that had been initially budgeted.
  2. Sold the company’s propane business unit for $19 million.
  3. Sold the company’s parking lot business unit for $13 million.
  4. Confirmed the Chapter 11 Plan of Liquidation.