KCP assisted an automobile repair and tire retailer with their Chapter 11 process. The project culminated in a successful restructuring which returned the company to four-wall profitability by refinancing its debt, streamlining its ownership structure, and eliminating unprofitable locations.
- Decline in value of real estate during economic recession.
- Lender aggressively sought a refinance or liquidation as the company’s profitability declined.
- Negative cash flow position with stretched trade payments.
- Completed analysis of all locations to identify properties to exit.
- Filed Chapter 11 Bankruptcy Reorganization to facilitate restructuring.
- Negotiated payment plans with vendors.
- Exited unprofitable locations with full repayment to secured lenders.
- Refinanced retained real estate under long term, conventional real estate mortgages.
- Obtained an additional line of credit for working capital.
- Returned company to a cash flow positive and profitable position.