Bankruptcy - Advisory & Restructuring in Complex Proceedings

Challenge

Marshall & Stevens (M&S) was engaged as financial advisors and accountants to Mountain Crane Services, a large crane rental provider and crane services company through its Chapter 11 Bankruptcy proceeding. Mountain Crane had excess crane equipment and debt with debt levels and terms that were unsustainable. The Company had the ability to operate profitably and efficiently and had a track record of the same but various factors, including high growth and the acquisition of excessive cranes led to a need for restructuring. Mountain Crane needed help creating a restructuring plan that was attainable and satisfactory to its creditors while facilitating its success in the future. Mountain Crane also needed assistance with monthly bankruptcy reporting, plan projections, a liquidation analysis, claims analysis and in negotiations with creditors.

Approach

M&S worked closely with highly skilled and talented bankruptcy counsel and competent management at Mountain Crane to prepare and negotiate a restructuring plan that was confirmed, leading to a successful reorganization. M&S helped create the plan through modeling financial statement and cash flow projections reflecting various iterations of Mountain Crane’s proposed plans. M&S provided thorough claims analyses to assist in negotiations with creditors and restructuring of secured debt. M&S assisted Mountain Crane with plan projections and a liquidation analysis that were defensible and supportable, leading to successful negotiations with creditors and the unsecured creditors committee resulting in a confirmed plan. Finally, M&S acted as plan administrator to ensure the payment of creditors pursuant to the confirmed plan over more than eight years.

Outcome/Solution

Mountain Crane’s confirmed plan allowed it to restructure its existing debt, sell certain cranes and pay a substantial amount to unsecured creditors over an eight-year period. A managing director at M&S was appointed to be the plan trustee, to administer payments to unsecured creditors from the amounts funded by the Company. Mountain Crane has completed all payments to unsecured creditors, fully-consummated its plan and emerged as a healthy and successful company with over 100 cranes and becoming one of the top 20 crane companies in America.