The two Companies served the residential and commercial landscaping markets throughout the Chicagoland area for over 20 years. At its peak, the combined revenues of the two companies were approximately $20 million.
As a result of year-over-year operating losses, the ownership of the two Companies decided it could no longer operate profitably and engaged Fort Dearborn to manage a winddown of the business, with the goal of maximizing cash proceeds for the secured and unsecured creditors.
Fort Dearborn took a multi-pronged approach to maximize the proceeds:
–Market and sell profitable segments of the business;
–Identify assets that could be sold through an auction process;
–Manage working capital with the goal of maximizing cash through the winddown; and
–Assist management with winding down the business.
Through negotiations with the auctioneer, FDP sold assets for fair market value and was able to obtain a 50% down payment. The down payment enabled the Companies to pay off all their senior debt.
FDP successfully sold the snow plowing, commercial and residential maintenance business to an independent landscaping company.
FDP successfully sold the utility business to the owner of the Companies.
FDP distributed the remaining cash to the unsecured creditors and successfully managed the Assignment for the Benefit of Creditors.