Computer & Technology Consulting Firm

Phoenix conducts the sale and wind down of a computer and technology consulting firm outside of a bankruptcy proceeding.

The Client

Phoenix’s client was a $40 million Computer and Technology Integrator and Consulting Firm headquartered in Warminster, PA.

The Challenge

Investment in a new business line combined with millions of dollars of excess and obsolete inventory had strained the Company’s liquidity, resulting in a significant over-advance position under its asset-based line of credit.

The Solution

Phoenix quickly concluded that it would be unable to obtain the support of the Company’s lender to support a turnaround, and that the sale and wind down of the Company was in the best interest of its shareholders. Phoenix developed and managed the orderly wind down of the business outside of a bankruptcy proceeding, which encompassed the sale of various business segments to three separate purchasers, the sale of inventory to 10 different purchasers, an auction of inventory and fixed assets, the collection of accounts receivable, and a negotiated settlement of the shareholders’ guarantee. The return to the senior secured creditor dramatically exceeded the return they would have realized in a forced liquidation or bankruptcy scenario, and the call on the shareholders’ guarantee was minimized.

Phoenix Turnaround

Primary Industry

  • Services

Secondary Industry

  • Information Technology

    Primary Services

  • Crisis ManagementBusiness / Operational AssessmentsLiquidation / Business Wind Down