Receivership

McMahan's Furniture Stores

Regional Furniture Chain

Receiver supervised ongoing collections operations for an A/R portfolio consisting of approximately 6,000 consumer accounts with an initial outstanding balance of approximately $5 Million. In addition, Receiver arranged for the sale of the remaining commercial real estate holdings of the debtor in California and Oregon. Also, Receiver consolidated and relocated several thousand files containing customer and business records on behalf of the secured creditor.

Hydra, LLC

Online Cost Per Action Advertising

Hydra, LLC was a member managed LLC which was in the business of providing, through the internet, on line cost per action advertising. A dispute arose among the three members of the LLC. The member which held a senior priority refused to allow the other members to proceed with business operations unless it was paid in excess of $2,000,000 along with other conditions. The members were willing to fund the operations of Hydra provided that the proceeds were not simply paid over to the holder of senior equity and, instead, would be used for business operations. Wells Fargo Bank, was also owed in excess of $4,000,000 which was secured by substantially all of the assets of Hydra. The holder of the senior equity interest was owed tens of millions of dollars refused. The other members then filed an action in the California Superior Court to dissolve Hydra and for the ex parte appointment of Joel B. Weinberg as the receiver. Immediately, the junior equity members sought to loan in excess of $1,000,000 to the receiver in the form of a receiver's certificate which would be entitled to a priority junior to Wells Fargo Bank but senior to the recalcitrant holder of senior equity in Hydra. The court approved the borrowing ex parte and Hydra had the working capital it needed to remain viable. This provided a bridge during which the receiver was able to market the assets of Hydra and culminated in a court approved sale to the holders of the junior equity interests free of the interests of the senior all within 21 days of inception of the case. The net result was the company was preserved as a going concern free from the overreaching actions of the senior equity interest.

Comair Rotron, Inc.

Computer Component Manufacturing

Company owned and operated manufacturing plants in Mexico and China, with administrative and sales office in the U.S. and the U.K. Receiver operated Mexican plant for several weeks to convert Work in Process (WIP) to finished goods and also accepted and filled new orders from several key customers, all in order to maximize yield to creditors. Receiver preserved and eventually sold Chinese operation. Receiver managed the collection of a sizeable A/R portfolio and coordinated recovery of a multimillion dollar claim against the insolvent U.K. entity.

Lortz & Son Mfg. Co.

Metal Fabrication

Receiver took possession and secured a 23-acre facility and prepared site for auction of assets. Receiver's specialists provided the added value necessary to transition debtor's Intellectual Property to buyers, which maximized the yield on sale of associated equipment. The auction was structured to allow full payment to holders of several liens, which also contributed to a successful auction. The secured creditor who initiated the receivership was paid in full.

Silk Trading Company

Home Décor Retail/Wholesale

Receiver supervised inventory consolidations and store liquidations in Los Angeles, New York, Chicago, Atlanta, and San Francisco. Receiver coordinated liquidation of the debtor's London assets with counterpart in the U.K.