Engagement Results

Client:

Banktruptcy Trustee

Industry:

Automotive & Recreational Vehicle (Painting & Hydro-Graphics)

Expertise:

Chapter 7 Liquidation

Assignment:

MainStream was engaged by the Office of the Trustee through the Northern Georgia Federal Bankruptcy Court to liquidate a U.S. based subsidiary of a Canadian firm. The company had been thrown into an involuntary bankruptcy by their three largest creditors and Mainstream was engaged to secure and preserve the assets, market the business and negotiate a sale with terms that would be acceptable to the Trustee, the Court and the purchaser.

Actions:

The company operated a Class "A" finishing line supplying products to some of the most well known and respected brands in the automotive and recreational vehicle industries. Due to a recessionary climate, the business had been shut-down for approximately six months while legal proceedings took place prior to the engagement of MainStream. After first securing the assets and developing a suitable working arrangement with the owner of the facility, MainStream identified forty-three prospective synergistic buyers across the United States, Mexico, and Canada. An offering memorandum was prepared and distributed to those prospects who met a series of qualifying standards. MainStream built a series of financial models based on business recovery estimates to help prospective buyers understand the potential economic benefit the business line offered them.

Facility tours were scheduled with eleven organizations that demonstrated a firm financial capability to acquire the business line. The Company's executives and shop supervisors were requested to attend in order to develop a comfort level with not only the economic models but also the operational suitability of the equipment, which made up the finishing line.

Results:

After the eleven visits, six organizations expressed interest in purchasing all or the vast majority of the Company's assets. After an active bidding process one organization, who was a direct competitor of the Company, extended a winning offer to acquire all of the assets that was deemed the highest and best offer. The entire engagement was completed over a period of 21 weeks.