• Preserved work force’s jobs 
  • Sold company’s assets 
  • Returned 100% to secured lender and 10% to unsecured creditors

The company was a private equity-owned designer and manufacturer of piezoelectric materials, transducers, turnkey integrated systems and optical-solution technologies that supported mission-critical applications for military and commercial customers. At the direction of the private equity sponsor, the company engaged CR3 professionals to explore strategic alternatives and advise on ways to achieve the best recovery for financial stakeholders. It became apparent that a bankruptcy process was the best option so the team took on the CRO role. The company completed production of several critical products for key customers, including U.S. Navy, due to the preservation of 30% of the work force’s jobs. CR3 successfully sold all of the company's assets and ultimately wound down the business. Although creditors initially expected virtually no recovery from a sale, 100% was returned to the secured lender and 10% to unsecured creditors.

The Situation

  • Private equity-owned designer and manufacturer of piezoelectric materials, transducers, turnkey integrated systems and optical-solution technologies that supported mission-critical applications for military and commercial customers
  • Owners attempted to determine if a sale of assets, either as a going concern or as a liquidation (in or out of court), would yield the highest and best recovery to the financial stakeholders

The Work

  • CR3 professionals engaged to explore strategic alternatives and advise private equity sponsor of options
  • Determined bankruptcy process was best option to recover value to financial stakeholders and took on CRO role
  • Assisted with bankruptcy filing and managed company through process
  • Negotiated the wind-down and transition of certain customer contracts
  • Managed the process of selling the company’s assets in multiple public and private sales.

The Results

  • Completed production of several critical products for key customers, including U.S. Navy, by preserving 30% of work force’s jobs
  • Successfully sold all of company’s assets and ultimately wound down the business
  • Returned 100% to secured lender and 10% to unsecured creditors

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