A family-owned manufacturer of insulated pipe and related products was experiencing financial difficulties. They were loosing money and were in violation of loan covenants with their bank, Additionally, there were conflicts between the first and second generation of family members. We improved their cash flow management and updated their cost accounting system. We worked with the family to have a successful transition in management from the first generation to the second generation. Based on our recommendations, the company was able to return to profitability and become compliant with its loan covenants.
We were engaged by the captive finance subsidiary of a major construction equipment manufacturer to analyze the operations and financial condition of one of its largest borrowers, who was having cash flow difficulties and was requesting that our client forgive a portion of the amount due. Our analysis concluded that the borrower had a thriving business but was severely under-capitalized. We did a preliminary valuation of the borrower and determined that its market value was great enough to pay of the lender in full and still have sufficient funds to payoff all of the other creditors as well as leave equity for the existing owners. The borrower was subsequently sold and paid off our client in full and also paid off all the other creditors and still had funds available to the owners.
We were appointed receiver in a securities fraud case initiated by the SCC. The sponsors of several limited partnerships were accused of engaging in a Ponzi scheme. The partnerships obtained ownership in companies that owned 6 commercial jet aircraft that were leased to major international airlines. One of the companies was in danger of being delisted from the registry of companies in Ireland which would have resulted on the loss of equity in 4 aircraft. We were able to get the company in good standing and saved the equity. We also hired new managers to manage the aircraft and work with the lessees. Over time we were able to returns more than 100% of their initial investment to the investors.
SEC Receivership
Alan Friedman Consulting
Captive Finance Company
Insulated Pipe Manufacturer