NGA Role
• NGA was retained to lead management in determining the viability of this entity.
Problem
• This once proud company had seen many of its customers begin to source their requirements in other countries with resulting loss of revenues. The company also suffered from aged equipment that while in good repair had limitations to serve the company’s customers increasingly tight specifications and requirements.
• This second generation company had no third-generation employees to take over the leadership of the business and no succession plan existed to transition ownership to employees or a third-party.
• The company lacked additional capital to fund operating losses and ownership’s resources were depleted.
NGA Solution
• NGA quickly assessed the situation with management and determined that given the very limited capital, lack of further resources, and lack of operating revenues or near-term growth opportunities in those revenues that the company should undertake to self-liquidate.
Outcome
• NGA lead the company through its self-liquidation.
• The secured creditor was fully repaid.
• The landlord received a recovery of some of the proceeds of the liquidated asset.
