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RAS Management was engaged by a private equity group to oversee the bankruptcy of a portfolio company engaged in the manufacturing of gasoline- and electric-powered consumer products including on-demand power generators and yard maintenance equipment.  The company was a spin-off from a nationally known consumer products group and was saddled with inefficient production facilities in multiple states, inventory positions that were out of kilter and not supportive of a steady flow of finished products, and litigation exposure related to claims about various of its products.  The company was in default of its secured credit facility and was on hold with vendors of critical parts necessary to secure the completion and sale of finished goods inventory.

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Prior to engaging RAS, the private equity group had commenced a going concern sale process that ultimately proved unsuccessful at generating a proposed sale price that covered the company’s secured debt obligations and it was determined that a bankruptcy filing was the appropriate course of action.  RAS was engaged as the Chief Restructuring Officer to oversee the company’s operations as well as the planning and execution of the bankruptcy process and the development of a sale strategy designed to maximize enterprise value.  RAS was able to quickly assess the value of each of the company’s operating units as well as its proprietary brands and we organized a sale process designed to maximize value by selling individual operations and residual assets to strategic buyers in different categories.  Ultimately, proceeds were generated that were well in excess of the company’s secured debt obligations.  Even after consideration of the cost of the bankruptcy process, proceeds were generated that provided a substantial recovery for unsecured creditors. 

Consumer Products Manufacturer