Commercial Recovery Associates, LLC (“CRA”) and its principals have extensive experience managing or liquidating companies in a variety of industries. We start with an initial analysis of the business in order to evaluate each company's available alternatives.
In general, there are three (3) options available to a company experiencing severe financial distress:
- Turnaround the organization, stem the cash flow losses, and secure new financing and/or equity;
- Reduce costs and operate the business for a temporary period while a strategic or financial purchaser is found for the business; or
- Liquidate the business' assets, perhaps through an Assignment for the Benefit of Creditors ("ABC"), receivership, bankruptcy or with the existing corporate structure, then distribute the proceeds according to legal and/or contractual priorities.
The actual option and the means for implementing the chosen option depends on several factors - including the company's legal and financial status with its creditors, the likely timetable to execute any of the options and the probable net proceeds to be realized from any of the available options -all of which are weighed and evaluated during the initial analysis. We then present our findings and recommendations to owners and other stakeholders, such as senior secured creditors. Once an agreed path is chosen, we prepare and implement the action plan. |
