Corporate Restructuring: Retail

The Client:
A used car retailer with a current portfolio of $11.8m of active loans and two static portfolios provided the initial receivables base when the current lender funded the opening line of credit. The situation became destabilized as the static pools incurred large amounts of charge-offs.

The Problem:
The Company was over-advanced on current line of credit, unable to present a turnaround plan to the lender and two older loans required liquidation. As a family business operating three sales locations it did not have the necessary management skills to enact a financial restructuring.

The Need:
After two professional service firms were unable to impact the cash situation, the Company needed a detailed assessment to identify the magnitude of operation and financial changes to be addressed if it was to survive.

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