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.
[ Printable Version ]
[Top] |
|
|