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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