Introduction to Wind-Down Services

Your company is out of options. Possibly, time has run out and there are no funds to move forward. Or you've made the tough decision to simply shut down the business since the plan is no longer viable. You certainly want to do what is best for all concerned. It might be possible to reorganize the company if there aren't too many constraints. Uncertainty surrounds you. There are employees to address, assets to be sold, creditors to manage, liabilities to be settled and investors to update.

Is a bankruptcy filing the only choice? Are there professionals to help you through the intricate maze of financial and business issues that now face your company? Can you diminish the involvement of owners and/or management to ensure a high level of objectivity? Is there a way to reduce the procedures and still adhere to all laws and regulations? If you have asked any of these questions, then Sherwood Partners can offer you some solid answers, grounded in years of experience.

Bankruptcy is not the only choice. This choice is an important decision to be made in consultation with both your legal and financial advisors. Sherwood Partners is able to offer other possibilities and solutions.

Sherwood Partners is one of the leading advisory firms in alternative solutions to bankruptcy. These wind-down services are called Assignments for the Benefit Of Creditors and Managed Liquidations. Both of these services require an intensive investment of time, specific knowledge in legal, financial and operational matters, prior hands-on experience and personal commitment to a professional and finalized process.

Assignment For The Benefit Of Creditors

An Assignment For The Benefit Of Creditors is a non-judicial process (in most states) defined by law that accords a much more flexible corporate wind-down then a formal bankruptcy. It also facilitates a faster conclusion. There is also the ability to find a buyer for the Intellectual Property (IP). As a result, owners and management have a legally sanctioned process with far greater efficiency. Assets sold outside of bankruptcy often yield higher returns. More importantly, the process can be implemented in a quicker, kinder and efficient manner. An ABC usually provides greater cash proceeds to cover corporate obligations.

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Managed Liquidations

A Managed Liquidation is an operational approach to wind-downs without a prescribed legal format. While the use of this process must be carefully selected, it may also provide the best returns to creditors as well as investors. The liquidating agent is able to work towards negotiated compromises in many areas. This process can lead to the recapture of some investment capital.

If the ultimate decision is towards a formal chapter proceeding Sherwood Partners can offer assistance in two areas:

• Planning the Process
  We work with management to define a viable reorganization plan. The plan must be acceptable to all relevant parties. We have the experience and knowledge in dealing with the many concerns that arise under such plans. We know the pitfalls.
• Interim Management
  Beyond reorganization, we can provide assistance by serving as interim manager. While a company is being restructured, there is nothing more important than maintaining value in key corporate assets. This preservation requires professional attention and know-how.

Large corporate creditors frequently contact Sherwood Partners for assistance

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Receiverships

In the Receivership role as requested by a creditor, Sherwood Partners administers the process of asset sales and creditor payments. The company's business affairs are managed by the Receiver to optimize the outcome. This court-appointed role allows Sherwood professionals to utilize their years of business knowledge and industry experience. Value can then be maximized.

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Advisors To Creditor Committees

As an Advisor To Creditor Committees, we serve as investigators for creditors. With a debtor in bankruptcy, trust has evaporated. We are retained to dig into the company's financial affairs and business operations to uncover the facts. The situation is assessed, recommendations are made and plans for reorganization are validated. Operating results can then be tracked with renewed confidence.

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