Role: Chief Restructuring Officer (CRO)
Client: Charitable Trust
Business Description: Manufacturing (Wayne County, Michigan)
- Metal Finishing
- Electro-Planting
Critical Issues:
- Sold by estate to unqualified buyer who virtually destroyed the business within one-year
- Sales reduced by 75%
- Equipment broken/sold
- Major quality issues
- Disgruntled workforce
- Cancelled insurance! (liability, property, environmental, workers comp, health, vision, dental)
- Regulatory non-compliance
- Significant site contamination and illegal hazardous waste storage
- Beneficiary of the estate was a charity
- Discovered nearby illegal hazardous waste storage site used by former owner for many years
- Site contained leaking barrels of cyanide, etc.
Resolution:
- Recovered assets from buyer
- Formed new SPE to hold assets
- Cleaned up and repaired equipment and facilities
- Negotiated with production staff and developed a retention bonus
- Specified, bid and placed new insurance policies
- Negotiated with Michigan UIA, State Treas., trade creditors and IRS to remove any claims from my client
- Immediately corrected QA issues
- Brought back many former customers
- Worked quickly with DEQ/EPA to cleanup site and remove all civil and criminal penalties from my client
- Sold entire company to strategic buyer
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