• Carve out of business entity as going concern, saving jobs
  • Achieved higher than expected recovery
  • Pre-packaged Chapter 7 process
The company was a $4MM recurring monthly revenue (RMR) home security provider to homes and businesses in the eastern U.S. with over 200 employees. After it became clear that the sale process would not yield a full recovery to the company’s lenders, CR3 was engaged to provide a CRO and additional personnel to manage the wind-down and increase recoveries to the constituents. CR3 successfully managed cash, oversaw and executed cost reductions, generated proceeds from incremental asset sales, accelerated payments from the original asset purchaser, and wound down the business ahead of a Chapter 7 bankruptcy process to allow a Trustee to recover the remaining proceeds.

The Situation

  • $4MM recurring monthly revenue (RMR) home security provider to homes and businesses in eastern U.S. with over 200 employees
  • Company began wind-down by selling security accounts to large competitor with agreed-upon sale process of 12 months
  • Buyer decided to extend process by six months without increasing purchase price of assets, which created additional cash-flow consumption and threatened to reduce recovery to secured lenders
  • Lenders required appointment of CRO to manage wind-down and increase recovery to stakeholders

The Work

  • Engaged to provide CRO and additional personnel to manage wind-down
  • Analyzed various in-court and out-of-court insolvency options to determine recoveries to constituents
  • Managed company personnel on-site to preserve operations and increase value of home-security accounts being sold
  • Negotiated sale of recently created dealer division to additional purchaser and generated incremental sale proceeds
  • Reduced personnel and service costs over time as accounts were sold and transferred to purchaser
  • Secured sale of excess inventory, vehicles, and equipment to liquidator to generate additional recoveries
  • Negotiated with buyer to accelerate timing of holdback payments on sale of accounts
  • Assisted in preparation of damages claims against company’s software provider and defense of various causes of action
  • Prepared company for Chapter 7 filing after all significant assets had been sold

The Results

  • Lenders received higher-than-expected recovery as a result of cost reductions and incremental asset sales
  • Dealer division was integrated into asset purchaser’s organization and continued to employ 30 FTEs who previously worked for company
  • Created fully packaged Chapter 7 bankruptcy process to generate future asset recoveries and dispose of significant liabilities

Explore Insights

View All
When Companies Need a Change Agent
Article

When Companies Need a Change Agent

There's a difference between steady state management and change agents. A great steady state management team can execute an operating plan every day with precision. Deviations from a defined process can create conflict in an organization that is dedicated to staying the course.

Read More
Restaurant Turnaround Strategies and Activities to Consider
Article

Restaurant Turnaround Strategies and Activities to Consider

Restructuring professionals wear many hats while executing a turnaround. They need to be skilled in finance, marketing, operations, human resources, and other areas. A strong turnaround professional is not only competent in these areas, but also knows when to leverage others.

Read More
Navigating a First-Of-Its-Kind Bankruptcy Case
Article

Navigating a First-Of-Its-Kind Bankruptcy Case

On September 15, 2021, a grain elevator operator and processor of soybeans submitted an out-of-compliance borrowing base certificate to its secured lender. What followed was a novel bankruptcy case marked by massive complexity and a near-impossible positive outcome.

Read More
Keys to Ensuring a Successful Roll-Up
Article

Keys to Ensuring a Successful Roll-Up

Roll-up mergers can create significant value through scale and cost savings, but not all roll-ups perform as expected. Speed of integration may be the most challenging factor when acquiring and consolidating multiple assets.

Read More
Unconventional Interim Management Approach Leads to Profitable Exit
Article

Unconventional Interim Management Approach Leads to Profitable Exit

Sometimes an unconventional approach validates an uncommon way of thinking. When an organization seeks interim management, it is typically distressed. A new CEO is named, and restructuring commences with the goal of continued operations or an exit.

Read More
When and Why Should You Hire an Interim Manager?
Article

When and Why Should You Hire an Interim Manager?

How do a management team and Board of Directors know when to engage an interim manager, and how do different situations determine the type of interim manager they should hire?

Read More
CR3 Partners Named to Consulting Magazine list of Best Small Consulting Firms 2021
Video

CR3 Partners Named to Consulting Magazine list of Best Small Consulting Firms 2021

CR3 Partners was recently named to Consulting Magazine's list of Best Consulting Firms to Work For. It is an honor to be part of this distinguished list of companies.

View Video
CR3 Partners Honored with M&A Advisor Award
News

CR3 Partners Honored with M&A Advisor Award

CR3 Partners announced that the firm received the Award for "Restructuring of the Year ($10MM to $50MM)" by M&A Advisor in the "Chapter 11 Reorganization Award" category.

Read More
Learn How Fraud and Valuation Matters are Handled During Bankruptcy
External Link

Learn How Fraud and Valuation Matters are Handled During Bankruptcy

Dallas-based Partner Sugi Hadiwijaya recently teamed up with Jermaine Watson at Bonds Ellis on a podcast highlighting basic aspects of how fraud-related matters are managed in a bankruptcy context. Listen to the full podcast brought to you by AICPA's Forensic and Valuation Services Section.

View
Four Paths to Increase Revenue in a Turnaround
Article

Four Paths to Increase Revenue in a Turnaround

When restructuring advisors are engaged to stabilize their clients' operations, they often focus on cutting expenses and controlling disbursements.

Read More
The JCPenney Bankruptcy: An inside view from a shareholder perspective
External Link

The JCPenney Bankruptcy: An inside view from a shareholder perspective

Reed Smith's Keith Aurzada joins William Snyder and Dawn Ragan, both of whom served as financial advisors to the equity committee in the JCPenney case. Our speakers explain the valuation of JCPenney assets and how restructuring support agreements shaped this case.

View
CR3 Partners Adds Manager and Two Senior Associates
News

CR3 Partners Adds Manager and Two Senior Associates

CR3 Partners is proud to announce its new Manager, Mark Kennedy, and its new Senior Associate, Lee Hiles, in the Atlanta office. We also made a recent addition to its new Richmond office with Senior Associate, Katie Usera.

Read More
CR3 Partners Adds New Service Offering and Continues  to Expand
News

CR3 Partners Adds New Service Offering and Continues to Expand

CR3 has appointed new Partner Suzanne Roski to expand and lead this practice in our new Richmond office. Suzanne's background includes over 35 years of professional experience with troubled companies, litigation, forensic investigation, and valuation consulting.

Read More
CROs Adapt to Limits on On-Site Presence
Article

CROs Adapt to Limits on On-Site Presence

Partner, David Tiffany walks us through how CROs adapt to limits on on-site presence in the most recent installment of the Turnaround Management Association's Journal of Corporate Renewal.

Read More
CR3 Partners Expands Los Angeles and Houston Offices
News

CR3 Partners Expands Los Angeles and Houston Offices

CR3 Partners is proud to announce the expansion of its rapidly growing Los Angeles office by adding two Senior Associates, Alex Pettee and Ashtynn Baltimore. Along with the additions to the Los Angeles office, CR3 Partners would also like to announce its new Director, Avery Alcorn out of the Houston office.

Read More
CR3 Partners Honored with Two M&A Advisor's Awards
News

CR3 Partners Honored with Two M&A Advisor's Awards

Led by Dustin Lough, the engagement team for The NORDAM Group, a large international aerospace company, received the Restructuring of the Year ($250MM to $500MM) award as advisors to the lending group leading up to and including the Chapter 11 bankruptcy proceeding.

Read More
CR3 Partners Adds Two Partners
News

CR3 Partners Adds Two Partners

CR3 Partners is pleased to announce that Sean Cunningham has joined as a Partner of the firm and will be based in its New York office. David Tiffany has been elevated to Partner of the firm in the Los Angeles office.

Read More
CR3 Partners Opens Los Angeles Office and Adds New Partner
News

CR3 Partners Opens Los Angeles Office and Adds New Partner

CR3 Partners is delighted to announce that Tim Skillman has joined as a Partner of the firm and will be heading the new CR3 Partners Los Angeles office.

Read More
CR3 Partners Honored with Two Turnaround Atlas Awards at 2019 Global M&A Network Annual Gala
News

CR3 Partners Honored with Two Turnaround Atlas Awards at 2019 Global M&A Network Annual Gala

CR3 Partners is pleased to announce that the firm was awarded two Turnaround Atlas Awards on May 20, 2019 at the Global M&A Network Annual Gala.

Read More
New Partners and Continued Growth of CR3 Partners
News

New Partners and Continued Growth of CR3 Partners

The CR3 Partners Board of Managers is pleased to announce that Jeff Armstrong and Dawn Ragan have been admitted to the firm's partnership.

Read More
Dawn Ragan is Interviewed for Journal of Corporate Renewal
External Link

Dawn Ragan is Interviewed for Journal of Corporate Renewal

Partner, Dawn Ragan, was recently featured in a Q&A article in the Journal of Corporate Renewal, the official publication of the Turnaround Management Association.

View
CR3 Partners Expands Chicago Team
News

CR3 Partners Expands Chicago Team

CR3 Partners is pleased to announce that Tim Shanahan has joined the CR3 Partners team and will be based in its Chicago office.

Read More
New Partner and Two More Executives Receive CTP Designation
News

New Partner and Two More Executives Receive CTP Designation

The CR3 Partners Board of Managers is delighted to announce that James Katchadurian has been promoted to Partner with the firm.

Read More
CR3 Partners Advises NEOPS Alongside SSG Capital on Sale of Debt
External Link

CR3 Partners Advises NEOPS Alongside SSG Capital on Sale of Debt

SSG Capital Advisors, LLC (SSG) acted as the investment banker to New England Orthotic & Prosthetic Systems, LLC and its affiliates in the sale of all of its outstanding senior debt to AHM Healthcare Strategies (AHM), an affiliate of Eschen Prosthetic and Orthotic Laboratories, Inc. (Eschen).

View
CR3 Partners Honored with Turnaround Award at 12th Annual Gala by M&A Advisor at 2018 Distressed Investing Summit
News

CR3 Partners Honored with Turnaround Award at 12th Annual Gala by M&A Advisor at 2018 Distressed Investing Summit

CR3 Partners, a Dallas-based national turnaround and performance improvement firm, today announced that the firm was awarded a 2018 Turnaround Award for "Ch 11 Reorganization of the Year for ($25-100MM)" by M&A Advisor in the "Chapter 11 Reorganization Award" category.

Read More
Industry Veterans Combine to Launch National Turnaround and Performance Improvement Firm
News

Industry Veterans Combine to Launch National Turnaround and Performance Improvement Firm

The leadership of CR3 Partners, LLC, today revealed the details of their newly-formed national turnaround and performance improvement firm.

Read More
Contact Us

CONTACT US

Do you have any further questions? How can we help you? Get in touch with us.

CONTACT US