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Success Stories

Bankruptcy Support:

  • $300M Retail Electronics Distributor - MSC was retained to provide cash flow court reporting documentation and to report to the creditor committee and the debtors’ accountants, internal accounting information. MSC successfully complied with all creditor committee requests and was cited by both councils for our responsive and accurate work.
  • Manufacturing Company – MSC was retained by the Creditors Committee to provide oversight of a Mid-Atlantic manufacturing company. During our engagement, we realized the debtor was trying to ship vital manufacturing equipment under the guise of product shipment across the border to Mexico. MSC alerted Creditor Committee council and successfully halted the illegal depletion of the debtors’ estate.

Accounting Support:

  • $50M Public Apparel Company – MSC was retained by a public company that was threatened by the SEC to be de-listed due to non-filing of various schedule 10Q’s and 10K’s. MSC together with Price Waterhouse negotiated with the SEC and after brining the books and records current and performing year-end physical inventory, satisfied all of the SEC requests and allowed the company to stay listed.
  • Start Up Telecommunications Company - MSC was retained by the American representative of a multi-national telecommunications company to assist in its start up efforts in the United States. MSC created all of its accounting procedures, chose and implemented the accounting software, and maintained a CFO type presence with the company. MSC did all of the MD&A work so that the company could successfully go public.

Bank Recovery – Liquidation:

  • Liquidating Service Company – MSC was retained by a bank to liquidate an engineering firm. The only assets, according to the bank, were accounts receivables for various contracts that the engineering firm had completed. Expected recovery, per the bank, was 30 cents on the dollar. MSC analyzed the books and records and discovered hundreds of thousands of dollars worth of unbilled hours for the various contracts. In addition, MSC realized the Company’s operating license had value in the engineering marketplace. MSC has currently recovered over 75% of the loan and is still in the midst of this project.

Bank Recovery – Merger & Acquisitions:

  • Handbag Company Sale – MSC was retained by the bank in a peaceful possession to liquidate a $10M handbag company that had $6M outstanding to the bank and $3M of collectable receivables. After analyzing the business, within 10 days, MSC was able to find a buyer for the company and created a commission structure of future earnings that allowed the bank to come out whole.

Forensic Accounting Support Telecommunications:

  • Forensic Accounting – MSC was retained by one of the principles of a communications company providing communications services for the US military in foreign territories. One partner claimed that his partner was stealing from him, after extensive forensic work, MSC successfully proved that the partner was in fact embezzling funds from the company through an elaborate expense reimbursement scheme. The courts subsequently forced the partner to give up his ownership of the business.

Bank Recoveries of MSC

Crystal & lamp whole seller
Owed: $7,000,000
Results: 100% back to bank
Facts:

  • Sold old inventory @ $0.86 on the dollar
  • Turned profitable within 4 months
  • Brought in new 65% owner, kept one of the former principals @ 35%
  • Bank retained account and moved it back to main borrowing line
  • Sold the 2 buildings, paid off balance of old note and senior former owner

Ladies importer
Owed: $8,000,000 (2 bank participation)
Results: Lead bank took a $1 million discount on their 60% piece.
Remaining bank factored the account.
Facts:

  • Set up weekly cash flows, reduced overhead by 40%
  • 18 months later, Company has doubled in sales volume to $50 million
  • 2002 resulted in a $2 million net profit
  • Moved from work-out division to main factoring line
  • Set up new accounting software for monthly reporting to bank

Home fuel delivery & boiler installation
Owed: $6,000,000
Results: Bank agreed to a $1.3 million discount in an orderly liquidation
Facts:

  • Had to generate missed billing to various government agencies for work performed
  • Assisted in collecting approximately $4 million in outstanding accounts receivables
  • Provided necessary documentation to recover a $375,000 bond on for the bank
  • Dealt with various vendors and avoided any lawsuits during the liquidation
  • Negotiated the sale of 2 buildings at higher then market value for the bank
  • Negotiated the sale of various equipment and delivery routes for the bank.

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