Case
Study: Textile Manufacturer
Court Appointed Trustee and
Receivership, Wind-down & Liquidation
Management
Company: $150 million manufacturer, weaver and
dyer of poly-wool blend textiles used in clothing and upholstery with
four facilities in North Carolina and Georgia
Situation/ Tasks Performed: Troubled textile manufacturer
struggling under $14 million in secured debt, unable to make interest
payments. TRG was appointed as Chapter 11 Trustee at the recommendation
of the senior secured creditor. TRG staff took over the day-to-day operations
to oversee the wind-down and orderly liquidation of all equipment, inventory,
and real estate. TRG also managed the collection of 7.2 million in outstanding
account receivables. Working on behalf of the Trustee, TRG staff administered
the estate, including retaining various professionals, preparing an analysis
of preferential/fraudulent transfers, reviewing claims and making the
final distribution of estate funds to creditors.
Results: TRG collected $5.3 million (74%) of outstanding
A/R, sold 80% of the inventory, and negotiated the sale of all machinery
and equipment. Two out of four pieces of real estate have been sold and
a third is pending. The fourth property appears to require environmental
cleanup costs exceeding the value of the property. TRG is in discussions
with local authorities regarding a transfer of the property to the municipality
in return for a waiver of claims and mutual releases. TRG staff was also
instrumental in evaluating significant D&O claims.
Nature of Assignment:
Primary: Court Appointed Trustee and
Receivership
Secondary: Wind-down & Liquidation
Management
Industry: Manufacturing
|
