MCA was engaged to serve as Chief Restructuring Officer for a regional seller of manufactured homes operating in California and Arizona. With approximately $30 million in annual revenue, the company experienced operational disruption following the unexpected passing of its owner, together with the discovery of significant unrecorded liabilities. Early in the engagement, MCA identified significant discrepancies between internal reports and formal financial statements, raising concerns about the reliability of the company’s historical records and the potential misuse of funds.
MCA’s Scope Included:
- Acting as CRO and providing interim operational oversight
- Recovering and analyzing five years of financial data across 20+ bank accounts
- Identifying and tracing the use of company funds, including potential non-business activity
- Leading an orderly wind-down and coordinating asset liquidation efforts
To address the financial inconsistencies, MCA traveled onsite to recover business records and initiate a detailed review. The team reconstructed daily cash flows across more than twenty accounts held at multiple financial institutions, clarifying the sources and uses of funds. Findings were organized into a clear financial narrative and shared with legal counsel and other stakeholders.
MCA managed the wind-down of operations for the manufactured homes business, including achieving a resolution with the company’s secured lender. This included asset monetization, coordination with the secured lender, work with legal counsel on investor and litigation matters, and support for related proceedings.
A key challenge was managing the complexity and volume of unrecorded banking transactions, particularly reconciling transactions and distinguishing between “real” company and personal expenditures and potentially fraudulent transactions. MCA addressed this through collaborative team analysis and the use of specialized tools to extract and interpret key financial insights.
The engagement delivered transparency to stakeholders, facilitated recovery for the secured lender, and supported legal processes.