Financial and management guidance for distressed businesses
Case Studies
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Client Industry: Medical
Role: Court-Appointed Receiver
Guidepoint Management was appointed receiver by the court of three medical clinics in the Pacific Northwest. The owner / practitioner had become disabled and was no longer able to practice, and stipulated to the appointment of a receiver on the recommendation of the secured lender.
Guidepoint Management stabilized the practices over a four-month period by hiring interim doctors and implementing a pay-for-performance plan with the remaining staff. The clinics were sold above the appraised value, and the net recovery to the secured lender was much better than expected. The company remains in business today and has retained most of the existing employees. -
Client Industry: Real Estate
Role: Advisor to Bankruptcy Trustee
Matt McKinlay was retained by the bankruptcy trustee to lead the administration of a defunct real estate conglomerate in one of the most complex bankruptcy cases in recent history. In this role, Matt supervised the estates’ daily cash needs and monitored the cash management controls across more than 300 cash accounts. He assisted the Trustee in reviewing and analyzing over 1.3M financial transactions that were made by the debtor during the four-year look back period that led to the filing of 850 avoidance action complaints. Matt led an effort to evaluate and administer over 18,000 proofs of claim asserting $59.7 billion in damages. He assisted counsel, the Committee of Unsecured Creditors and other stakeholders in the creation of a liquidating plan that was confirmed by Order of the Court. He assisted the US Attorney General in the successful prosecution of former company insiders on grounds of bank fraud, wire fraud and securities fraud. These efforts yielded significant recoveries for creditors of the company.
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Client Industry: Distributor
Role: Loan Workout Advisor engaged by the Secured Lender
Guidepoint Management was retained by the secured lender to evaluate the collateral and projected recovery of a mid-sized steel distributor on the West Coast. The secured lender was losing confidence in the borrower’s ability to repay: the loan was in default and the borrower was slow to respond to the lender with requested information. Within two weeks, Guidepoint Management presented a recovery plan that was agreed to by both the business owner and the secured lender. The recovery plan was implemented and the loan was repaid in full within 90 days. The net recovery to the secured lender was 100% including default interest and all fees.
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Client Industry: Retail
Role: Turnaround Coach
Guidepoint Management was engaged as a turnaround coach by a business owner to:
1) help restructure commercial loans that were in default; and
2) evaluate company operations. We helped restore the confidence of the secured lender and provided oversight which allowed the owner and lender to restructure the company’s debt. Furthermore, it was determined the company had non-performing assets and inventory, and an overhead cost structure that was not sustainable given the current revenue levels. A turnaround plan was created which called for the owner to sell non-performing assets and reduce employee headcount. It also provided long-term strategies for driving revenue improvement. The advice was taken, the company remains in business today and is in compliance with existing loan covenants. -
Client Industry: Transportation
Role: Loan Workout Advisor to Secured Lender
Guidepoint Management was engaged by the secured lender to create a loan recovery plan for a distressed transportation company. Within one week, a recovery plan was developed and a forbearance agreement was executed between the borrower and lender. Two weeks later, the loan was repaid in full.
This was our bank’s first experience using a receivership to recover a credit. We just finished presenting the process and outcome of this credit to our board of directors, who were very pleased. Nice work!
Representative of the Secured Lender