Chapter 11 Confirmed Bankruptcy Case within 10 months
C&K Markets, DBA Ray’s Food Place, appointed EHI as Chief Restructuring Officer (CRO) replacing the CEO of a 65-store regional grocery chain with 14 pharmacies employing over 2,000. Ray’s filed for Chapter 11 protection in November 2013. During bankruptcy proceedings, 14 pharmacies were sold and 23 grocery stores closed. Additionally, a new management team was hired. Ray’s emerged from bankruptcy on August 8, 2014.
Federal Receivership
North Pacific Group (NPG), a distributor of building products, established in 1948 with six business divisions and more than 200 constantly changing inventory locations. NPG with over 471 employees suffered serious operating losses and attempted to locate investors/ buyers. The Secured Lending Creditors who were owed $42 million filled a consensual Federal Receivership on January 20, 2010. EHI was appointed Federal Receiver taking care of custody and possession of all business operations. EHI and the Lender Group negotiated a budget to fund downsized operations. By mid-March 2010, two operating divisions were sold and the Lender Group was paid off. By the end of summer, three distributions centers and five mills were sold. 250 employees retained their positions with those buyers.
Oregon State Court Receivership and a Chapter 11
Stanton Industries (SI), a sofa manufacturer with three plants, had locations in Tualatin OR, Stockton CA and Phoenix AZ. Operations were shut down. EHI collected the A/R that included negotiating discounts with large box retailers to mitigate losses on future warranty claims We liquidated the inventory by selling to existing customers, competitors, discounters and hiring an auctioneer who specialized in furniture manufacturing equipment.
A unique aspect of this case was the SI-owned real estate in Phoenix. The lender started a foreclosure action in Arizona State Court. EHI put the property into a Chapter 11 bankruptcy stopping the foreclosure, allowing a sale to take place, which paid off the lender's debt and Chapter 11 expenses. Additionally, he equity in the property flowed to the receivership estate.
Company Name Here
Revenue: $550,000,000
Loan Size: $150,000,000
- Accountant Work Here #1
- Cras lacinia bibendum lorem, nec molestie mauris congue sed.
- Nullam lacinia enim nec aliquam posuere.
- Aenean facilisis urna ut tristique porttitor. Aenean non tincidunt dui, in vestibulum felis.
- Nullam ultricies enim augue, et hendrerit ante interdum eu.
Company Name Here
Revenue: $550,000,000
Loan Size: $150,000,000
- Accountant Work Here #1
- Cras lacinia bibendum lorem, nec molestie mauris congue sed.
- Nullam lacinia enim nec aliquam posuere.
- Aenean facilisis urna ut tristique porttitor. Aenean non tincidunt dui, in vestibulum felis.
- Nullam ultricies enim augue, et hendrerit ante interdum eu.
Company Name Here
Revenue: $550,000,000
Loan Size: $150,000,000
- Accountant Work Here #1
- Cras lacinia bibendum lorem, nec molestie mauris congue sed.
- Nullam lacinia enim nec aliquam posuere.
- Aenean facilisis urna ut tristique porttitor. Aenean non tincidunt dui, in vestibulum felis.
- Nullam ultricies enim augue, et hendrerit ante interdum eu.