An asset-based lender (ABL) required a trusted resource to oversee and ultimately manage the wind-down of their $20-million secured loan exposure with an $80-million importer and distributor of consumer packaged goods (CPG). The ABL had approved a plan to reduce its exposure by operating through a period which traditionally had been the seasonal high for the business; however, it would be critical that there be careful management of the family-run company’s inventory, accounts receivable and expenses.
The Solution: Managed the Wind Down for a Consumer Packaged Goods Company
The ABL lender appointed the Farber CFO Resources practice as a monitor, providing on-site, operational leadership in a challenging and complex family-owned and operated business. In addition, our CFO Resource team was able to successfully work with the employees union who were concerned about the welfare of its workers throughout the restructuring.
Over a period of six months, working in parallel with a team from Farber’s restructuring practice (who were Court-appointed Proposal Trustees and ultimately the Receiver), the exposure of the ABL lender was reduced significantly as the CFO Resources team maximized recoveries on inventory and accounts receivable through a combination of effective hands-on management and the sale of assets.
Farber was successful in achieving an orderly wind down of the business, avoiding a “fire-sale” liquidation and maximizing recoveries in a potentially volatile unionized and family-business environment.