Channel Technologies

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

Role(s)

  • Creditor Advisor
  • CRO

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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Overview

  • Software/Technology
  • Restructuring and Turnaround

Engagement Team