Disposition Strategy Implemented While Managing Crisis; Proceeds Within 5 Percent of Pre-sale Estimates
Client: Global Financial Services Companies
Challenge: Devise and Implement Crisis Plan to Secure and Dispose of Specialized Plastics Machinery for a Group of Leasing Companies
Several leasing companies found themselves in a dispute over production equipment being used by a mutual borrower who defaulted on loan agreements. Time was of the essence because the value of the plastics machinery and other process equipment was deteriorating due to extensive usage, substandard maintenance practices and the cannibalization of parts.
AccuVal Approach
Upon contact, AccuVal began providing crisis consulting and devised a plan to ensure the value of the assets would be preserved. The next day, action was taken to elevate the lessee's motivation to refinance the debt and purchase the assets outright by establishing an immediate and visible in-plant presence to stabilize the situation and help accelerate negotiations. Simultaneously, AccuVal helped the leasing companies understand their collateral positions and explore the sale scenarios and likely outcomes.
To ensure AccuVal's sister company, LiquiTec®, was prepared to execute a full-scale liquidation, AccuVal tagged the assets; photographed and videotaped operations; reconciled loan documents; collected product samples; assessed the strategic importance of certain assets to the borrower's operations; estimated the value of the machinery; determined the condition and operability of the assets; and coordinated the possible dismantlement and removal of the machinery. These efforts broke the deadlock, and the company filed for bankruptcy protection.
Having prepared for this probable outcome, LiquiTec® was poised to launch a customized website and distribute direct mail brochures to advertise the assets for sale; engage rigging and transportation companies to move the assets, if necessary; and rent warehouse space to marshal the assets. All of these costs were known by the customers in advance. LiquiTec® also moved proactively to identify qualified buyers for most of the machinery so that, when cleared by the bankruptcy court, the sale of the assets could proceed without lost time and carrying costs.
Bottom Line: Crisis Managed; Disposition Plan Seamlessly Executed; Proceeds Matched Presale Appraisal Estimates
The combination of expertise supplied by AccuVal and LiquiTec® afforded the client timely consulting advice, the elimination of uncertainty in a stressful situation, accurate information needed to make sound business decisions and premium liquidation results that matched pre-sale estimates.
The AccuVal AdVantage™
Knowing how to manage crises. The ability to devise strategies that drive favorable outcomes. The skill to negotiate and close transactions. Intimate knowledge of the marketplace. The capability to execute. That's The AccuVal AdVantage™ at work.
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