Steel service center. $50 million sales. $10 million debt.
- The Company lost over 40% of its business due to the recession, was losing money, and was unable to pay its bills.
- The Company’s steel suppliers began dropping prices in order to sell their own inventory and they began to sell to the Company’s customers direct.
- The Company’s shareholders concluded that the business was not viable and they desired to liquidate the business out of courtwithout the expense of a bankruptcy.
- Morris Anderson was brought in to develop a liquidation plan that would be supported by the Company’s lenders.
- Morris Anderson worked with the Company team to execute its plan to sell the inventory for the highest amount possible, to collect accounts receivable and to hold an equipment auction.
- Morris Anderson communicated with the banks and the largest unsecured creditors to keep them informed of the progress of the liquidation.
- The liquidation of the Company occurred out-of-court without the cost of a bankruptcy filing.
- Over $10 million of secured debt with two banks was retired in full.
- Over $1 million was available for distribution to unsecured creditors.