An established California oilfield services and equipment supplier that undertook international projects in The Middle East, Nigeria and Colombia, lost a major contract with a national customer, severely impacting operations and regional viability.
A working capital crunch set in motion a series of liquidity crises, bank over-advances, and missed payments, affecting each aspect of operations.
Swiftly intervened in the financial management of the company to attempt to triage the extensive working capital requirements to meet operational needs.
Conducted an expedited and comprehensive bi-coastal operational financial and business process review to determine gaps and omissions that were causing inaccurate financial reporting and forecasting.
A hyper accurate 13-week cash flow was developed to assess revenue, cash burn and ultimate liquidity.
Successfully engaged the lender in potential forbearance and restructuring discussions.
Presented alternatives, solutions and potential outcomes to the principals, including the potential for restructuring as a CA only operation with a bank forbearance and withdrawal from unprofitable and costly international operations, and/or a sale under Chapter 11.
The principals chose to ignore recommendations and embarked on a hybrid plan of their own design.
Within 4 months, the company had run out of cash and was placed in a Receivership to be liquidated.