"Reese Partners helped Huhtamaki realize significant cost savings of over $2 million a year. The expertise provided by Reese Partners was superior to what we could have done internally, with respect to both quality and time. They brought an objective view that couldn't be replicated internally, worked within a tight timeline and presented what made the most sense given both current and future business trends."
"Reese Partners assessed our current state of effectiveness and efficiency at our Grant Park Engineering Center, benchmarked us to similar operations and recommended opportunities for improvement. They brought great industry knowledge that supported the benchmark, plus brought a fresh set of unbiased eyes to the assessment."
Crisis Managers and Financial Advisors to a Subprime Finance Company
Business Case
A publicly held finance company specializing in sub-prime auto loans carried a loan portfolio in excess of $2.6 billion funded through 18 securitizations. Due to unsuccessful negotiations with its securitization insurer, the company filed for Chapter 11 bankruptcy.
Reese Partners Role
Reese Partners was originally retained as Crisis Manager and financial advisors to the debtor and the Board of Directors. After the resignation of several key executives, Reese Partners personnel served as the interim CEO and CFO, responsible for all day-to-day business and financial operations.
Client Success
Reese Partners assisted the company by: » Managing the preparation of all bankruptcy filings including all schedules, statement of financial affairs and monthly operating reports » Developing the rolling cash flow forecast and the key employee retention plan » Creating a comprehensive model to value the residual interests for 18 securitization transactions and the sale of two loan portfolios » Assisting in the development and documentation of the loan loss curves » Analyzing and negotiating the sale of the servicing platform to SST, a unit of JPMorgan Chase » Assisting with the development and negotiation of the Plan with creditors and the monoline insurer » Negotiating and coordinating the auctioning of all physical assets » Managing the analysis of proof of claims and executory contracts » Calculating and managing cash distributions to creditors and » Transitioning the company's operations to a new servicer, and staffing an in-house team to administer the Plan.
Results
The creation of the new securitization model enabled the analysis and negotiation of multiple scenarios to address the needs of creditors, and the monoline insurer. The approved Plan resulted in the sale of the servicing platform and the full repayment of all senior debt obligations and a substantial recovery by subordinated and unsecured creditors.
