UniCapital Corporation

Division: Phoenix Management Services


Client

UniCapital Corporation was a publicly traded $1.26 billion revenue leasing firm headquartered in Florida.

Problem

UniCapital Corporation had been on an expansion through acquisition and was unable to consolidate its diverse companies into a profitable business model. Secured creditors stopped the securitization of new leases, putting the entire operation in jeopardy. Phoenix was brought in to lead a turnaround/restructuring of the Company. At that time, the secured creditors had estimated that they would lose 50% of their loan balances at the conclusion of the restructuring.

Solution

Phoenix Management Services assumed the interim management roles of CEO, COO and Chief Accounting Officer to operate the Company while crafting a restructuring of UniCapital as an ongoing enterprise. Because of the massive acquisition debt and the unwillingness of any financial organization to resume the securitization of leases as part of an out-of-court restructuring, Phoenix directed a Chapter 11 reorganization, which included securing Company assets, winding down operations and selling off operating subsidiaries. Phoenix also implemented reliable financial reporting, and structured a reorganization of the Company that enabled the secured creditors to acquire the residual company and retain use of its substantial tax loss carryforward. Secured creditors are now projected to achieve nearly a 100% recovery through repayment of debt.