Leasing Firm

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.

The Client

Publicly traded $1.26 billion revenue Leasing Firm headquartered in Florida.

The Challenge

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.

The Solution

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.

Phoenix Turnaround

Primary Industry

  • Financial

Secondary Industry

  • Leasing / Financial Services

    Primary Services

  • Crisis ManagementInterim ManagementBusiness / Operational AssessmentsFinancial ForecastingBankruptcy AdvisoryLiquidation / Business Wind Down