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CASE STUDY (A): DIRECT MAIL ADVERTISING SERVICE COMPANY
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The Challenge
* Rapidly running out of cash and in default
* Overdue contracts and delivery dates
* Inability to procure raw materials,
or pay operating expenses
* Strained relationships with customers, vendors and lenders.
| The Solution
* Led negotiations with creditors, vendors
and customers
* Convinced 90% of customers to
renegotiate contracts and accept
price increases
* Reduced debts and extended
payment terms
* Reestablished credit lines with existing
and new lenders and suppliers
* Guided Shareholders through the process
of "Assignment for the Benefit of Creditors"
| The Result
* Oversaw sale and transition to new owners through an "Asset Sale"
* Restructured debt
* Turned around and saved the company
* Company became well-managed and very profitable
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