MCA Financial Group served as financial advisor to an online premium wine retailer and club. MCA assisted the debtor in planning for and executing a small business subchapter V bankruptcy reorganization, which necessitated accelerated deadlines and faster confirmation of the debtor’s reorganization plan.
MCA prepared the company for filing by developing a 13-week cash flow and other required statements and schedules. Customer and vendor communication strategies were implemented, and DIP and exit financing were vetted and secured.
During the process, many of the company’s vendors, each important, were unfamiliar with the complexities of a subchapter V reorganization and needed reassurance before continuing to supply the company. MCA worked collaboratively with the company’s dedicated management team to preempt potential customer and vendor issues and safeguard the smooth operation of the business through the subchapter V reorganization.
MCA’s valuation of the company was vital in resolving objections to the plan, which were lodged by one of the creditors, who claimed the plan was “unfair.” The subchapter V trustee’s support was gained during the confirmation process through communication and demonstration of the plan’s attributes, including repayment of vendors and honoring customer deposits in full, post confirmation.
MCA’s debtor advisory and valuation expertise was instrumental in getting the bankruptcy plan confirmed in three months. The plan fully paid all trade creditors, preserved customer deposits, and led to a successful go-forward plan.