Business Restructuring & Turnaround
Regional Commercial and Residential Waste and Recycling Service Provider: California
MCA was retained by one of the largest independent waste management companies in California. The company was in default with its lender and was running out of cash due to material losses from several non-core business investments. MCA developed and led a restructuring plan to divest of all non-core investments, implement operational efficiencies, reduce costs, improve cash flow, and structure a forbearance agreement with the bank.
Restructuring & Turnaround
3PL Supply Chain Services
MCA was the lender’s advisor for a $75 million national 3PL (supply chain management solutions, logistics services, and other related supply chain driven services). The company had identified the potential embezzlement of what was estimated to be $8 million by their Chief Financial Officer. Out of cash and in an over-advanced situation with the lender, vendors had stopped shipping and operations were at a standstill. MCA helped to identify additional embezzled funds bringing the total to $16 million. MCA was appointed Chief Restructuring Officer and successfully negotiated with the lender and vendors to reestablish production and operations. With operations reestablished the bank was able to sell its note, with minimal deficiency, to a private equity buyer.
Restructuring, Turnaround & Bankruptcy
Multi-State Wholesale Distributor
MCA was retained by this $240 million regional wholesale distributor’s board at critical juncture in growth strategy. After opening a second 500,000 square foot warehouse, this multi-state distributer ran out of cash and was facing a possible business shutdown, as the secured lender was not willing to advance on operating losses. MCA developed and led a reorganization plan to consolidate operations, substantially reduce inventory, and adjust costs to regain breakeven cash flow. MCA led the company and the secured real estate and ABL lenders through a successful sale process via the Delaware Bankruptcy Court, resulting in full recoveries for the secured lenders and recoveries for the unsecured lenders.
Interim Chief Financial Officer: Texas
Faced with over $50 million in debt and cash losses, MCA successfully led the sale of non-core energy related assets and restructuring of core operations, including a feed mill, sand and gravel operation, and 3PL services in an out-of-court restructuring. Creditors were repaid and the remaining operations were properly capitalized through a refinancing.