Case Study

Financial Advisory

Oilfield Services Provider

THE FIRE

Company was established in and supplied oilfield services and equipment for exploration and production operations California, Pennsylvania and undertook projects in The Middle East, Nigeria and Colombia.

It relied on one major customer in PA, who when the contract was lost, severely impacted operations and regional viability.

A MACCO managing director was engaged, at Lender’s suggestion, when a liquidity crisis arose after bank over-advances and missed payments.

THE RESCUE

MACCO intervened in working capital management of the company to assess cash requirements to meet current operational needs.

MACCO conducted an expedited and comprehensive bi-coastal operational and financial review to determine basis of inaccurate financial reporting.

An accurate 13-week cash flow was developed to assess revenue, liquidity and company viability.

THE RESULT

MACCO successfully engaged company lender in potential forbearance and restructuring negotiations.

Alternatives, solutions and potential outcomes were presented to company principals who rejected the advice.

Lender, who agreed with MACCO restructuring options, sold its loan after principals balked and embarked on a “hybrid” plan.

Within 4 months, company ran out of cash, was placed in receivership and had its assets liquidated.