HilcoRecoveryStrategies

 

Hilco Recovery Strategies (“HRS”) offers an integrated process to evaluate problem loan portfolios and one-off distressed loans, devise exit strategies to maximize recoveries and execute asset monetization services as required to meet strategic objectives.  HRS is headed by Marty Battaglia, a respected lender and troubled loan workout specialist.

 

HRS serves creditors, intermediaries and equity holders, who are working with distressed industrial or consumer companies in pre-bankruptcy, Chapter 11 bankruptcy or through an Assignment for the Benefit of Creditors.

>>>View Hilco Recovery Strategies Organization Chart

 

The HRS process has two interrelated stages, as follows:

 

Phase 1. Assessment and Strategic Recommendations – HRS reviews the current operating performance of the troubled company and can provide liquidity and profitability forecasts that would coincide with potential exit timelines. 

 

The process continues with a comprehensive valuation of the loan’s underlying collateral is conducted by Hilco Appraisal Services  All tangible and intangible assets, including inventory, machinery and equipment, real estate, A/R and intellectual property, are valued based on various monetization alternatives. 

 

HRS strives to be completely objective and independent throughout the valuation process.  These values will create a baseline recovery against which exit strategies can recommended and measured.

 

Phase 2. Exit – The goal in this stage is to guide the client through the exit process that will result in the highest possible recovery for creditors or equity holders in the shortest timeframe.  Generally, this can be accomplished through a “dual process” in which HRS engages Hilco Corporate Finance to conduct a going concern sale of the company, or aspects of the company such as divisions and discrete facilities.

 

Simultaneously, HRS collaborates with other specialized Hilco asset disposition business units to prepare for an expedited wind down and sale of the company’s component assets should the going concern sale process not yield a satisfactory recovery.

 

In the event of a wind down and asset sale, HRS would manage the entire asset disposition process, enabling the company to focus on managing employees, winding down operations and dealing with claims and other legal processes.  Hilco will arrange for the retention of an assignee or receiver, or work alongside the lender’s selection.

 

Should immediate cash be needed to fund a wind down and sale of assets, Hilco may be able to provide funding from its own resources or through third party sources as arranged by Hilco Corporate finance.

 

Compensation - Hilco’s compensation is generally success-based.  Various options including guarantees or guarantees with upside sharing, outright asset purchase, commission structures are available.

 

For more information, contact Marty Battaglia: 847-849-2938.  Email: mbattaglia@hilcotrading.com