Case Studies: Bankruptcy Advisory

Chief Restructuring Officer

A tier two supplier of molded plastic automobile parts filed for Chapter 11 bankruptcy protection, with the assurance of continued operations utilizing financing supplied by a major customer. This financing was conditioned on the appointment of an independent chief restructuring officer who would oversee plant operations and expedite the sale of the business. Peter Colmer assumed control of operations in early May and successfully concluded a sale to a strategic competitor in July of the same year.

Distribution Company

Peter Colmer and Mark Smith, CFA, were engaged in the summer of 2012 to advise an Alabama-based distributor on its options for formally restructuring under Chapter 11 of the U.S. Bankruptcy Code. Mr. Colmer and Mr. Smith worked quickly to understand the key issues and advised on the key risks and opportunities involved with a filing. Prior to the petition date, key vendors were identified and specific plans were established for dealing with each one. Detailed projection models and other marketing materials were also developed primarily for the purpose of securing debtor-in-possession (DIP) financing. As of October 2012, a DIP facility had been successfully closed and the company continued operating while working toward confirming a plan of reorganization.