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Business Crisis
Advisor to electronic services company in continuing business operations Situation.
Situation:
Company CEO and President needing advice on how to keep the company from closing. Owed lending institutions nearly $750,000, all personally guaranteed by owners. Heavy pressure of keeping the company going for employees and large customer base.
Action:
After analysis of financial outlook and interviewing key business managers of the company, it was determined the best course of action was to shutter the company doors. With no present or future outlook for financing, the company would not meet even the smallest of the obligations and liabilities. Consulted with owners and key management to begin process of company wind down with immediate closure within a few weeks.
Results:
The company was closed with pending discussions on outstanding obligations from owners. The sale of all un-pledged assets is underway, with the secured assets being directed to secured creditors. Negotiations will take place on settlement of existing debt unpaid by current funds or sale of assets proceeds. |
