FDP was engaged to advise the senior lender group, comprised of five banks, with the Chapter 11 Bankruptcy filing of a not-for-profit Organization in the Metropolitan Milwaukee area.

At the time of the bankruptcy filing, the Organization operated 10 locations and 2 camps. In addition, the Organization was in the process of divesting its charter school.  

As part of our creditor advisory role, FDP:

‒Identified pre-petition debt payments in the 13-week cash flow forecast, which led the debtor to revise its cash flow forecast;

‒Increased the value of the senior creditor’s cash collateral claim, by valuing the cash flows associated with the Organization’s membership; 

‒Analyzed the impact of asset sales to the senior creditor’s claim;

‒Reviewed and analyzed a variety of court filings; and

‒Developed a liquidation analysis of the Organization, analyzing the realization from real estate and fixed asset proceeds, accounts receivable collections, and other miscellaneous assets. Included in the analysis were expected wind-down costs.

Due to the significant cash burn of the Organization, both the senior creditor group and the debtor agreed to an expeditious exit from bankruptcy under mutually agreeable terms.

‒Fort Dearborn facilitated the discussion by developing a conceptual working plan for the Organization that would allow it to exit bankruptcy on a profitable basis, while continuing its mission; and 

‒The plan ultimately adopted by the debtor was very similar to FDP’s conceptual framework.