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The Situation: A private family-owned real estate holding company had transferred ownership to the grandchildren of the company’s founder. Unfortunately, internal family disputes and allegations of wrongdoing led to the company being unable to conduct business effectively, resulting in the application for an order to wind up, and the appointment of the Liquidator.
What We Did: Schonfeld Inc., as the court appointed Liquidator, reviewed the assets and circumstances of the company to formulate a Liquidation Plan. The plan maximized the net after-tax proceeds of the liquidation.
The Result: Schonfeld Inc. successfully implemented the Liquidation Plan, ensured a successful conclusion of the business, achieved the maximum value available, and distributed property to the shareholders in accordance with further orders of the Court. |
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The Situation: A company operating the largest chain of bowling centers in Canada suffered significant financial difficulty as a result of a recent sale by the founder to an investor. These included; poor investments, deteriorating revenues, large capital requirements and reduced cash resources. As a result of demands, the company could not meet its obligations to pay creditors and government claims for employee remittances, goods and services taxes, and provincial retail sales taxes.
What We Did: Schonfeld Inc. was engaged as Chief Restructuring Officer (CRO) in a CCAA filing. As such, Schonfeld Inc. reviewed all of the facilities and operating procedures. In addition to these duties, Schonfeld Inc. actively monitored the company’s compliance with bank lending covenants, prepared a sales and marketing plan to dispose of the centres, and provided recommendations concerning potential purchasers.
The Result: Schonfeld Inc. was able to successfully sell all of the bowling centres and returned significant sums to the secured creditors. |
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The Situation: A highly successful real-estate development company became incapacitated by family disputes upon the transition of ownership to the second generation.
What We Did: Schonfeld Inc. was engaged as an independent third party to manage the completion of the company’s residential construction projects and outstanding commitments, including closing several hundred agreements of purchase and sale, as well as concluding all business operations. Taking complete and total control of the company’s day-to-day operations, Schonfeld Inc. efficiently wound-down business operations in an effort to retain the company’s value and ensure that all unfinished house building work was completed in a satisfactory manner.
The Result: Schonfeld Inc. was able to preserve the company’s value and return significant funds to the family members, who have since gone their separate ways and have the opportunity to achieve success without the burden of this unfortunate situation. |
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The Situation: An Ottawa based developer of next generation core optical networking solutions for long haul and ultra-long haul operations had not generated any revenue from operations. Unfortunately, the company was unsuccessful in its attempts to raise additional capital and filed for bankruptcy.
What We Did: Schonfeld Inc. was retained as a Trustee in Bankruptcy and, acting in the capacity of Receiver, sold the company’s owned assets and inventory in an effort to repay the remaining debt to the secured creditors. Subsequently a buyer surfaced with an interest in acquiring the shares of the company to utilize significant tax losses. Schonfeld Inc. then filed a Proposal under the Bankruptcy and Insolvency Act that provided a significant return to the unsecured creditors.
The Result: A significant final dividend was paid to the preferred and unsecured creditors, ensuring that there were no longer any outstanding claims. The return to creditors was considerably more than what was available under the bankruptcy proceedings. |
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