Michael J. McCauley
Senior Managing Director & Shareholder
Years with Phoenix: 6
Years of Turnaround Experience: 12
Office Location: Philadelphia, PA
Mr. McCauley is a proven leader with 20 years of successful accomplishments in a broad array of complex transactions and challenging workout and interim management situations. He is a skilled negotiator who is quick to assess a situation, develop practical strategic alternatives, build consensus and implement an effective action plan to preserve and enhance value.
His diversified experience includes having served as a Board Member, Chief Restructuring Officer, Chief Financial Advisor and/or Interim CFO of a diverse group of Phoenix clients. Mr. McCauley specializes in providing interim management as well as financial and operational leadership for middle market companies that are facing operational and financial challenges. Mr. McCauley also provides hands-on transactional leadership for distressed middle market companies that are in need of capital, financial restructuring and/or merger and acquisition assistance.
During his career, Mr. McCauley has specialized in serving private companies in a wide spectrum of industries in the U.S. and Canada. Mr. McCauley has structured and negotiated more than a hundred new financing transactions, loan modifications, forbearance agreements, financial restructurings, recapitalizations, and legal settlements both in and out of court. He also managed the sale and divestiture of numerous companies and specific assets under Chapter 11 and Chapter 7 bankruptcies and under UCC Article 9. Overall, Mr. McCauley has worked with more than 200 middle market companies with an aggregate loan and equity value of more than $1.5 billion.
Phoenix Management Services Experience
- Turnaround Management
- Crisis Management
- Interim Management
- Operational Assessments
- Financial Forecasting
- Cash Management
- Strategic Advisory
- Bankruptcy Advisory
- Liquidation and Business Wind Down
- Due Diligence Reviews
- Litigation Support
Selected Advisory Assignments
Served as Chief Restructuring Officer and investment banker for an $90 million manufacturer of corrugated steel and plastic drainage pipes sold into various constructions markets, including commercial real estate, residential housing, and municipal highway project markets. Performed an operational assessment and prepared a monthly financial forecast and weekly cash flow forecast. Negotiated a Loan Amendment and Waiver to re-set covenants to levels that the company could meet in the down economy. Restructured subordinated indebtedness and negotiated and obtained new senior financing.
Served as Chief Restructuring Officer for a $30 million manufacturer and importer of wood and iron stair parts and components. Managed day-to-day cash flow and led the development and implementation of a business restructuring plan to cease manufacturing in the U.S. and convert to a 100% import model in order to salvage the business and attract new investment through a private sale of the Company. Negotiated with creditors to effectuate the restructuring and close on sale within 100 days of engagement resulting in a recovery to the secured creditors in excess of expectations.
Served as Assistant Chief Restructuring Officer for a $200 million fabricator and value added distributor of architectural glass and aluminum windows and products. Managed development of cash flow and financial forecasting, negotiated real property and equipment leases generating $2 million of annual savings, validated impacts of cost savings initiatives, and managed reporting to various constituents. Assisted company through successful bankruptcy filing and section 363 sale to a private equity group resulting in a recovery to all creditors in excess of expectations.
Served as financial advisor to a $400 million manufacturer of vinyl and aluminum windows and doors, screens and related products. Assisted the shareholders and senior management team in: 1) averting a bankruptcy nearly imposed by its existing unsecured senior bank syndicate and term loan note holders, 2) negotiating for more time through an extended Forbearance Agreement, and 3) securing and closing on a new $100.0 million asset based credit facility with a New Lending Group. Performed business assessment, developed cash flow and financial forecasts, negotiated lease restructuring and settlements, developed required asset based lending reporting processes and procedures, and managed due diligence and loan structuring resulting in increased borrowing availability.
Industry Experience
- Airline
- Apparel and Retail
- Building Products/Commodities
- Computers and Electronics
- Consumer Products
- Casino and Gaming
- Financial Services and Leasing
- Healthcare and Assisted Living
- Hotel and Time Share Resort
- Information Technology and Software
- Jewelry and Precious Metals
- Printing and Publishing
- Restaurants, Food and Beverage
- Steel and Aluminum Mills/Foundries
- Telecommunications
- Transportation and Logistics
Phoenix Capital Resources Experience
- Capital Raising and Refinancing
- Expansion/Growth Financing
- Mergers, Acquisitions and Divestitures
- Recapitalization and Balance Sheet Restructurings
- Out-of-court & Bankruptcy Auctions
Prior Experience
Prior to joining Phoenix Management Services, Inc., Mr. McCauley was a Vice President and Portfolio Manager with FINOVA Capital Corporation. He managed various portfolios of diversified syndicated loans, senior loans, subordinated mezzanine loans, equipment leases, factoring and floorplanning facilities, and various public and private equity investments, including warrants, preferred stock and common stock. During the last six years with the company, he assisted with the orderly liquidation process of its $7 billion diversified portfolio, following its own restructuring efforts in 2000 and bankruptcy reorganization in 2001. He held executive-level positions in two operating companies that FINOVA took control of through debt-to-equity conversions and also served on an Official Committee of Unsecured Creditors in a Chapter 11 liquidation.
Mr. McCauley began his career with CoreStates Bank, N.A. (now Wells Fargo), in Philadelphia PA. He completed the Wholesale Bank Training Program working in middle market and asset based lending, including loan participations with Congress Financial Corporation.
Education/Affiliations
Mr. McCauley earned his Bachelor of Arts from Dickinson College in Carlisle, PA, with a double major in Economics and Policy & Management Studies. He studied for a semester at American University in Washington, D.C. under the Economic Policy Semester Exchange Program.
He is a member of the Association for Corporate Growth, Turnaround Management Association, and the Association of Insolvency and Restructuring Advisors. Mr. McCauley is registered with FINRA and holds his Series 7, Series 63, Series 79, and Series 24 licenses.
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