Engagement Results

Company

General Time Corp. & GTC Properties Inc.

Industry

Consumer Goods - Manufacturing

Size

$100 million

Expertise

Sale and Recovery of Assets

Assignment

The largest provider of clocks with over $100 million of revenue annually and owner of the most respected and well known brand names in the industry had not reacted to customer demands and the trend of low-cost manufacturing. They struggled in a highly competitive market with cost issues and overwhelming debt load.

Actions

MainStream delivered a recovery analysis that defined estimated values that could be realized from the sale of the intellectual property, inventory and company assets. Cash flow forecasts, operating budgets and wind-down resource requirements were established for the company. Manufacturing operations were consolidated and WIP build out scenarios were completed. A Chapter 11 filing was submitted to the court with a negotiated DIP facility. MainStream worked through the primary customers to sell inventory on hand. An Offering Memorandum was prepared and distributed that created 30 prospective buyers. MainStream managed the auction of the manufacturing and office equipment and served as the liaison with local government and the press.

Results

MainStream provided turn-key services to manage the wind-down process. Intellectual property including the brand names were sold to multiple buyers at an eight figure value. Inventories were sold through primary retail outlets while the receivables continued to be collected. The manufacturing equipment and office assets were sold through an auction process. The net recovery MainStream provided through the wind-down of the company was $22 million higher than was offered for the company being sold as a going concern.