A Sampling of Our Work
The following are case studies of work performed by the professionals of Getzler Henrich. To protect the anonymity of our clients, some of the names have been withheld.
The following are case studies of work performed by the professionals of Getzler Henrich. To protect the anonymity of our clients, some of the names have been withheld.
Healthcare: Medical Services
Stabilizing Cash Flows and Improving Operations
Castle Dental Centers (Nasdaq: CASL) was representative of the 1990’s rise — and subsequent decline — of rollups in the medical services industry. From its base in Houston, the company raised enough capital to eventually acquire more than 100 dental practices across California, Florida, Texas and Tennessee. However, company performance began to decline as individual practices proved difficult to integrate and under-performed. With a high debt load (approximately $80 million) and the discovery that a significant portion of its accounts receivable were uncollectible, the company faced a liquidity crisis. Getzler Henrich was appointed interim CEO of the company. Getzler Henrich successfully stabilized cash flow, instituted management changes, improved controls, and tightened operations, thereby ensuring ongoing financing and allowing the company to continue operations.
Manufacturing
Executing a Successful Turnaround
North America’s largest producer of wire rope, Wire Rope Corporation of America (WRCA), was $90 million in debt, bleeding cash, and facing an active, complex group of creditors. Its management had lost its handle on essential elements of the operation, such as budgets, costs, margins, capacity and which segments of the business were still viable. Getzler Henrich was called in to effect recovery. Getzler Henrich designed and executed a turnaround plan, which included, among other elements: installing Getzler Henrich staff as interim WRCA management; immediately eliminating more than $15 million in company expenses; negotiating and settling on terms with WRCA’s web of creditors and bank groups; and lining up an ongoing management team from WRCA’s existing staff. Thirteen months later, the turnaround was complete WRCA emerged from Chapter 11 a profitable company generating $120 million in annual revenues.
Media & Entertainment
Obtaining Recovery for Secureds and Unsecureds
Unitel Video (Nasdaq: UNV) had been a leader in the video production industry, with revenues reaching $85 million and principal operations in New York, Los Angeles, Chicago and Pittsburgh. However, due to an ill-timed merger and industry-wide difficulties, revenues declined to $42 million and liabilities increased to more than $52 million. When the primary secured lender lost confidence in senior management, the company filed for Chapter 11 bankruptcy protection, and Getzler Henrich was appointed as CEO of Unitel Video. Primary activities included managing and improving the performance of two of Unitel’s divisions while positioning them for sale, managing the relationship with secured and unsecured creditors in the case, overseeing the liquidation of one of Unitel’s divisions, and managing professionals retained by the debtor. As a result of Getzler Henrich’s efforts, the primary secured lender recovered virtually 100% of its outstanding loan, and unsecured creditors received a substantial recovery.
Retail
Managing the Stress of Success
This privately held specialty electronics retailer is still a leader in its industry. The company’s signs of distress were not typical — there were no loans that were being called, nor was there a long-term decline in revenues or a sudden disastrous event. Instead, the company, with sales growing at roughly 10% annually to more than $400 million, recognized that its internal systems could in no way support the organization’s increased size and complexity. After being managed for decades in a relatively unsophisticated manner, the company retained Getzler Henrich to develop and implement improved financial and operational controls. Today, the required systems are being implemented, and the company is better positioned for future growth.
Securing Recovery for Lenders and Principals
The largest bakery in the New York metropolitan area was a family business that had reached close to $100 million in sales. A difficult business environment and challenges from the union helped cause significant sales declines and operating losses. The company filed for bankruptcy and Getzler Henrich was retained as chief restructuring officer. While improving operations, Getzler Henrich positioned the company for sale. The company was successfully sold with all its operations intact, providing a complete recovery to the secured lender and an attractive return to the company’s principals.
Large Jewelry Direct Mail and Retailer
One of the largest US gift and jewelry direct mail/retailers had experienced declining sales for several years. The company was in default of its covenants and had missed its EBITDA projection by significant margin. The company’s bank group was concerned that the company would experience greater losses and was unwilling to provide an amended loan agreement without an additional equity investment. Getzler Henrich undertook an in-depth analysis of the business, including the company’s viability and annual business plan. Getzler Henrich also assessed the more profitable aspects of the business and the company’s plan to sell a division. After carefully reviewing the company’s working capital requirements, Getzler Henrich facilitated negotiations between the company and the bank group and subordinated debtholders to achieve a new financing agreement.
Technology
Following the Money Trail
This electronic trading broker, a Chapter 11 debtor, was of the largest in the United States when it sold its principal operations to E*Trade Financial Corp for $100 million plus earn-out opportunity of $180 million. Due to a significant number of transactions that involved third parties, the company received no benefit from the monetization transactions. In fact, monies from the initial consideration flowed to approximately 40 domestic and foreign bank accounts. Getzler Henrich, as financial advisor for the Official Committee of Unsecured Creditors, was instrumental in examing the transactions and tracing the flow of funds in order to recover monies for the estate and provide creditors with a recovery. Getzler Henrich followed the money trail through numerous entities - both domestic and foreign - and identified the location of the monies available for recovery. Getzler Henrich also provided the necessary expert witness testimony to support the litigation.
Moving the Cheese in Real-Time
This Connecticut-based importer and distributor of specialty cheeses in the United States used manual, paper-dependent systems to interact with food brokers and its own sales force to track shipments and communicate with grocers and supermarket chains. It was looking for a more efficient and less costly process to enhance productivity and efficiency. Getzler Henrich identified a lack of real-time visibility into the supply chain and sales systems as an operational weakness. Leveraging Microsoft .NET technologies, the Getzler Henrich team of IT professionals designed and rapidly implemented a two-pronged solution: a custom Web-based portal using the Microsoft Windows Server operating system and a custom tracking and reporting system using Microsoft Visual Basic. The portal provides brokers and sales staff a single, secure view to review requests for promotional allocations, project status, approvals, and payments. The tracking and reporting system allows them quick and easy access to sales data by a number of factors, including broker, department, item, and customer. The combined solution provides the company with real-time access to critical information, resulting in improved efficiencies, better relationships, lower business costs, fact-based planning and marketing, and time savings.
Other Industries
Mining for Value
A publicly-traded gold mining company, filed Chapter 11 after suffering a failed investment in a new mine. A Getzler Henrich professional was brought on as financial advisor to the Creditors’ Committee representing in excess of $400 million in debt. He worked with a mining engineering consultant to ascertain the remaining mines’ financial viability and closely monitored and analyzed ongoing operational results and Debtors’ court motions. Deploying forensic expertise, he investigated opportunities for recovery from preference payments. Additionally, to ensure appropriate use of funds and treatment of creditors, he scrutinized pre- and post-petition inter-company flow of funds and Plans of Reorganization. Finally, after facilitating the negotiated settlement between senior secured debt and subordinated bondholders, he helped the company successfully emerge from Chapter 11 within a year of its filing.
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Stabilizing Cash Flows and Improving Operations
Castle Dental Centers (Nasdaq: CASL) was representative of the 1990’s rise — and subsequent decline — of rollups in the medical services industry. From its base in Houston, the company raised enough capital to eventually acquire more than 100 dental practices across California, Florida, Texas and Tennessee. However, company performance began to decline as individual practices proved difficult to integrate and under-performed. With a high debt load (approximately $80 million) and the discovery that a significant portion of its accounts receivable were uncollectible, the company faced a liquidity crisis. Getzler Henrich was appointed interim CEO of the company. Getzler Henrich successfully stabilized cash flow, instituted management changes, improved controls, and tightened operations, thereby ensuring ongoing financing and allowing the company to continue operations.
Manufacturing
Executing a Successful Turnaround
North America’s largest producer of wire rope, Wire Rope Corporation of America (WRCA), was $90 million in debt, bleeding cash, and facing an active, complex group of creditors. Its management had lost its handle on essential elements of the operation, such as budgets, costs, margins, capacity and which segments of the business were still viable. Getzler Henrich was called in to effect recovery. Getzler Henrich designed and executed a turnaround plan, which included, among other elements: installing Getzler Henrich staff as interim WRCA management; immediately eliminating more than $15 million in company expenses; negotiating and settling on terms with WRCA’s web of creditors and bank groups; and lining up an ongoing management team from WRCA’s existing staff. Thirteen months later, the turnaround was complete WRCA emerged from Chapter 11 a profitable company generating $120 million in annual revenues.
Media & Entertainment
Obtaining Recovery for Secureds and Unsecureds
Unitel Video (Nasdaq: UNV) had been a leader in the video production industry, with revenues reaching $85 million and principal operations in New York, Los Angeles, Chicago and Pittsburgh. However, due to an ill-timed merger and industry-wide difficulties, revenues declined to $42 million and liabilities increased to more than $52 million. When the primary secured lender lost confidence in senior management, the company filed for Chapter 11 bankruptcy protection, and Getzler Henrich was appointed as CEO of Unitel Video. Primary activities included managing and improving the performance of two of Unitel’s divisions while positioning them for sale, managing the relationship with secured and unsecured creditors in the case, overseeing the liquidation of one of Unitel’s divisions, and managing professionals retained by the debtor. As a result of Getzler Henrich’s efforts, the primary secured lender recovered virtually 100% of its outstanding loan, and unsecured creditors received a substantial recovery.
Retail
Managing the Stress of Success
This privately held specialty electronics retailer is still a leader in its industry. The company’s signs of distress were not typical — there were no loans that were being called, nor was there a long-term decline in revenues or a sudden disastrous event. Instead, the company, with sales growing at roughly 10% annually to more than $400 million, recognized that its internal systems could in no way support the organization’s increased size and complexity. After being managed for decades in a relatively unsophisticated manner, the company retained Getzler Henrich to develop and implement improved financial and operational controls. Today, the required systems are being implemented, and the company is better positioned for future growth.
Securing Recovery for Lenders and Principals
The largest bakery in the New York metropolitan area was a family business that had reached close to $100 million in sales. A difficult business environment and challenges from the union helped cause significant sales declines and operating losses. The company filed for bankruptcy and Getzler Henrich was retained as chief restructuring officer. While improving operations, Getzler Henrich positioned the company for sale. The company was successfully sold with all its operations intact, providing a complete recovery to the secured lender and an attractive return to the company’s principals.
Large Jewelry Direct Mail and Retailer
One of the largest US gift and jewelry direct mail/retailers had experienced declining sales for several years. The company was in default of its covenants and had missed its EBITDA projection by significant margin. The company’s bank group was concerned that the company would experience greater losses and was unwilling to provide an amended loan agreement without an additional equity investment. Getzler Henrich undertook an in-depth analysis of the business, including the company’s viability and annual business plan. Getzler Henrich also assessed the more profitable aspects of the business and the company’s plan to sell a division. After carefully reviewing the company’s working capital requirements, Getzler Henrich facilitated negotiations between the company and the bank group and subordinated debtholders to achieve a new financing agreement.
Technology
Following the Money Trail
This electronic trading broker, a Chapter 11 debtor, was of the largest in the United States when it sold its principal operations to E*Trade Financial Corp for $100 million plus earn-out opportunity of $180 million. Due to a significant number of transactions that involved third parties, the company received no benefit from the monetization transactions. In fact, monies from the initial consideration flowed to approximately 40 domestic and foreign bank accounts. Getzler Henrich, as financial advisor for the Official Committee of Unsecured Creditors, was instrumental in examing the transactions and tracing the flow of funds in order to recover monies for the estate and provide creditors with a recovery. Getzler Henrich followed the money trail through numerous entities - both domestic and foreign - and identified the location of the monies available for recovery. Getzler Henrich also provided the necessary expert witness testimony to support the litigation.
Moving the Cheese in Real-Time
This Connecticut-based importer and distributor of specialty cheeses in the United States used manual, paper-dependent systems to interact with food brokers and its own sales force to track shipments and communicate with grocers and supermarket chains. It was looking for a more efficient and less costly process to enhance productivity and efficiency. Getzler Henrich identified a lack of real-time visibility into the supply chain and sales systems as an operational weakness. Leveraging Microsoft .NET technologies, the Getzler Henrich team of IT professionals designed and rapidly implemented a two-pronged solution: a custom Web-based portal using the Microsoft Windows Server operating system and a custom tracking and reporting system using Microsoft Visual Basic. The portal provides brokers and sales staff a single, secure view to review requests for promotional allocations, project status, approvals, and payments. The tracking and reporting system allows them quick and easy access to sales data by a number of factors, including broker, department, item, and customer. The combined solution provides the company with real-time access to critical information, resulting in improved efficiencies, better relationships, lower business costs, fact-based planning and marketing, and time savings.
Other Industries
Mining for Value
A publicly-traded gold mining company, filed Chapter 11 after suffering a failed investment in a new mine. A Getzler Henrich professional was brought on as financial advisor to the Creditors’ Committee representing in excess of $400 million in debt. He worked with a mining engineering consultant to ascertain the remaining mines’ financial viability and closely monitored and analyzed ongoing operational results and Debtors’ court motions. Deploying forensic expertise, he investigated opportunities for recovery from preference payments. Additionally, to ensure appropriate use of funds and treatment of creditors, he scrutinized pre- and post-petition inter-company flow of funds and Plans of Reorganization. Finally, after facilitating the negotiated settlement between senior secured debt and subordinated bondholders, he helped the company successfully emerge from Chapter 11 within a year of its filing.
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