Restructure Indebtedness

Negotiate with lenders and trade creditors to restructure the terms of existing debts.

Analyze opportunities to acquire debt at a discount; exchange debt for equity and/or warrants.

Samples of Successfully Completed Assignments

Automobile Parts Distributor

Automobile Parts Distributor with 7 locations and $45 million in revenues was in default under its bank lines of credit. RE-ALT developed and implemented a turnaround plan which included an expense reduction program, restructuring vendor accounts payable and negotiating a Loan Modification Agreement with the secured lender which significantly reduced monthly debt service payments.

Office Equipment Dealer

Office Equipment Dealer with revenues of $25 million was in default under its line of credit. Management had signed seven forbearance agreements over a two year period. RE-ALT negotiated a Debt Settlement Agreement with the secured lender at a 38% discount from outstanding loan balance due and assisted management in raising new debt financing to payoff the existing loan.

Toy and Electronics Manufacturer

Developed and implemented an operational and financial restructuring of this manufacturer.  Capital was raised by selling excess assets, reducing operating expenses, and raising new equity.  The subordinated debt was exchanged for a small cash payment and Class A and Class B common stock warrants.  A Debt Settlement Agreement was negotiated with the secured lender; the discounted settlement was paid off with the proceeds from the asset sales and from internally generated cash flow.

Wholesale Bakery and Frozen Food Manufacturer

Recapitalized this distressed manufacturer. Secured a working capital facility, refinanced existing machinery & equipment to secure a term loan, renegotiated the payment terms on the mortgage financing, exchanged some debt for a minority equity position in the Company, and negotiated a discount on the acquisition of some other debt.

Electrical Contractor

Advised management on a turnaround plan that included negotiating a discounted payoff on the first mortgage, securing a new Term Loan Facility, restructuring the terms on its Industrial Development Agency bonds, and significantly reducing operating expenses.

Specialty Wholesale Bakery

Developed and implemented a complete recapitalization and operating turnaround of this troubled manufacturer. Industrial Development Agency Bonds were called and paid by the bank that had issued the supporting Letter of Credit; a new discounted note was issued to the bank; equity capital was raised to acquire undersecured debt at a discount; union payment obligations were discounted and converted into a deferred payment agreement. Operating expenses were reduced and changes were made in the product mix and in management personnel as part of a comprehensive turnaround plan.

Building Supplies Distributor

Assisted management in developing and implementing a turnaround plan, obtaining forbearance agreements from the company’s banks, negotiating new credit terms with the major vendors, and reducing operating expenses. Subsequently successfully sold the company to a national competitor with $900 million in sales.

Real Estate Developer

Restructured the mortgages on several different properties for this troubled regional real estate development firm. Restructuring and settlements included: forming a Collateral Pool and allocating the proceeds from assets as they were sold over time; negotiating several deed-in-lieu of foreclosures; negotiating new payment terms on several mortgages, and offering new collateral in return for partial debt forgiveness.

Electrical Contractor – Public Works

Implemented a turnaround plan which included: converting large accounts payable into long term notes, some with a discount; restructuring the payment terms on the mortgage financings; negotiating a deferred payment agreement concerning union health and welfare payment obligations; negotiating revised terms on obligations due to the bonding company; reducing personnel; and lowering operating expenses.

Cooperative Housing Corp.

For this distressed cooperative, negotiated a discounted payoff on the first mortgage held by the Federal Home Loan Mortgage Corp., advised the Cooperative Board on a new $3 million mortgage financing, negotiated debt forgiveness and restructured the terms on the second mortgage, and implemented a cost reduction program with the property manager.

Pet Supply Distributor and Retailer

Structured a recapitalization plan that included an equity investment, negotiated settlements with certain trade creditors and landlords and the New York State Taxing Authorities, and restructured the secured debt payment terms.

Frozen Dinner Manufacturer

Negotiated an extension of a Letter of Credit facility supporting the Company’s Industrial Development Agency Bonds.  Subsequently was successful in selling the Company and utilizing a portion of the sale proceeds to discount some of the debt.

Office Building Developer

For this distressed developer, instead of their original plan to do a deed-in-lieu of foreclosure, I negotiated the acquisition of the mortgage financing at a significant discounted while assisting in raising the new mortgage financing and negotiating the terms and conditions. An expense reduction program was also implemented.

United States Department of Commerce

Awarded one of only four national grants issued by the National Institute of Standards and Technology, a division of the United States Department of Commerce.  This grant, awarded in conjunction with the New York City Industrial Technology Assistance Corp., provided funding to provide debt restructuring, turnaround management services, and merger/acquisition services to New York City based underperforming manufacturers.

Brooklyn Economic Development Corporation

Awarded a grant by the Brooklyn Economic Development Corporation to stabilize the operations of distressed Brooklyn companies. The focus was on restructuring debt and operations to reposition companies to be stabilized employers in their local areas.