Channel Technologies

The Situation

Our client 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. The owners attempted to determine whether a sale of assets, either as a going concern or as a liquidation either out of court or in court, would yield the highest and best recovery to the financial stakeholders.

Role(s)

  • Creditor Advisor
  • CRO

The Work

We were initially engaged at the direction of the private-equity sponsor to explore strategic alternatives and advise the sponsor of its options. When it became apparent that a bankruptcy process was the best option to recover value to the financial stakeholders, we took on the CRO role, assisted with the company’s filing and managed the company through the bankruptcy process. We preserved the jobs of 30% of the client’s workforce in order to complete the production of several critical products for key customers, including the U.S. Navy; negotiated the wind-down and transition of certain customer contracts; and managed the process of selling the company’s assets in multiple public and private sales.

The Results

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, we returned 100% to the secured lender and 10% to unsecured creditors.


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Overview

  • Software/Technology
  • Restructuring and Turnaround

Engagement Team