industry
Manufacturing

Leading successful domestic and international §363 sales as interim CEO and CRO​

Key Metrics:
  • First-ever sale of the Chinese operations of a US Chapter 11 Debtor to a Chinese company
  • 100% recovery to all secured and unsecured creditors ​​​
Value levers pulled:
  • Interim CEO
  • CRO
  • §363 sale/wind-down

Picture this...

You’re a $450M global agricultural feed company headquartered in Iowa, with hog and feed production operations in five states and across China. After discovering fraud in your Chinese subsidiaries, you’re faced with an SEC investigation, NASDAQ delisting, and an inability to access additional capital. Concurrently, the US subsidiary loses arbitration with your primary customer, resulting in a $9M payment and ensuing credit defaults on your $70M senior secured note. ​

You turn to Accordion.

With a stalking horse bid at just enough to pay secured lenders in full, we work with you to develop a creative solution resulting in a higher and better bid for the US assets from a consortium of pork producers while incorporating a wind-down of nearly half the hog inventory. Additionally, we:

  • Act as financial advisors and interim CEO and CRO.
  • Assist with the political and operational complexities of selling Chinese operations/entities through a US Bankruptcy process. Though only one serious bidder emerges, we keep them committed to the transaction and despite numerous re-trades and political maneuvering, ultimately close the sale.
  • Spearhead the first-ever sale of the Chinese operations of a US Chapter 11 Debtor to a Chinese company. In less than one year, this sale culminates in a highly successful and orderly liquidation of your total assets.

Your value is enhanced.

Because of the creative solution for a higher bid, there is a robust auction and an increase in your purchase price by $12MM. You successfully go through a §363 sale of the US business. This generates financial and political capital to pay off all secured creditors in full, provides a 100% recovery to unsecured creditors and significant recovery to equity constituencies, and affords time to complete a thorough sale of your Chinese business.

Enhanced value:

You reap multiple benefits, including:

  • First-ever sale of the Chinese operations of a US Chapter 11 Debtor to a Chinese company
  • 100% recovery to all secured and unsecured creditors ​​​​