Strategic Disposition Plan Executed; Sales Nets Nearly Triple Cash Offer; $1 Million Inventory Recovered and Sold
Client: Money Center Bank
Challenge: Sell Bankrupt Facility in Puerto Rico
A fully-integrated yarn mill and garment manufacturer in Puerto Rico was ultimately shuttered due to bankruptcy following failed attempts to sell the enterprise. This state-of-the-art textile mill was marketed for sale for over one year while it remained in operation. The sales effort produced one cash offer from a local buyer. LiquiTec’s sister company, AccuVal, was consulted regarding the proposed transaction and recommended the offer be rejected. AccuVal supported its recommendations by developing a three-month disposition plan that would be executed by LiquiTec®. AccuVal assured the seller that the plan would create international interest and net a much higher return for both secured and unsecured creditors. The plan was approved, and LiquiTec® was engaged.
LiquiTec and AccuVal Approach
This engagement was not just a sale; it was international crisis management in a Spanish speaking country. Anticipating company employees would be uncooperative, LiquiTec® proactively engaged local workers to assist in preparing the plant for sale – a timely decision since mill workers walked off the job on day one. The proposed sale and dismantlement of the mill was also contrary to the interests of the Government of Puerto Rico who promptly shut off all power to the plant. Working tirelessly in total darkness for nearly one month, set up crews prepared the mill for sale with flashlights until electricity was restored. LiquiTec® also expected to sell the remaining inventory which, upon our arrival, was largely missing. Without request from the client, LiquiTec® investigated and identified the location of inventory valued at more than one million dollars. The sale orchestrated by LiquiTec® drew offers from throughout the world. The assets were first offered in their entirety and then on a piecemeal basis. The competition for the entire plant was intense, and the bulk sale process produced the premium results anticipated.
Bottom Line: AccuVal Constructs a Winning Plan; LiquiTec® Nearly Triples the Recovery on the Machinery; Inventory Also Recovered and Sold
LiquiTec® executed the crisis and disposition plan designed by AccuVal, conducted the sale on-time and on-budget, drew an international audience of qualified buyers, maximized the value of the machinery and created added value by recovering missing inventory.
The LiquiTec AdVantage™
Strategic thinking. The ability to manage crises anywhere in the world. The forensics skills to discover inconsistencies and recover assets. Knowledge of world markets. The ability to attract qualified buyers from throughout the globe. Keeping our clients' best interests first. That's The LiquiTec AdVantage™ at work.
