Phoenix assumes the roles of interim CEO, COO and Chief Accounting Officer to operate a leasing firm. Phoenix successfully winds down the firm with the secured creditors achieving full recovery.
Publicly traded $1.26 billion revenue Leasing Firm headquartered in Florida.
The Firm 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.
Phoenix Management Services assumed the interim management roles of CEO, COO, and Chief Accounting Officer to operate the Company while crafting a restructuring 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 were projected to achieve nearly a 100% recovery through repayment of debt.
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