$40 Million Manufacturer and Distributor of Refurbished Cellular Phones

• Significant operating losses of $2.9MM
• Lack of financial reporting for over 5 months
• IT Conversion expense of $1.7MM - project not yet completed
• New financial officers
• Financial covenant violations
• Opened new plant in Texas

• Prepared a viability assessment
• Interview staff to assess organizational structure
• Review contractual relationships/contracts with customers
• Analyze A/P and determine how to address delinquent status
• Analyze work flow and controls to manage the business
• Validate the projections and the collateral coverage/covenant compliance

• Organizational structure revamped - hired a new CFO
• Entered into a forbearance agreement with bank
• Performed and reviewed physical inventory and established a $300K reserve
• Effectively cut operating expenses
• New manufacturing program implemented
• Company has reduced loss and improved cash flow