Pharmaceutical Formulations, Inc.

Background and Situation:

• This publicly traded manufacturer of generic pharmaceuticals had sustained continuing losses and the loss of its CFO.
• As a result, it was forced to file Chapter 11 bankruptcy (requiring a facility closure) while seeking a strategic buyer.

Results and Accomplishments:

• As interim crisis manager, ESBA immediately got control of the financial function and managed all of the transition activities, involving, union negotiations, the POR, bankruptcy filings, buyer due diligence and working capital financing.
• The result was a successful Section 363 sale to Leiner Corporation, enabling the full payment of all employee compensation, an 80 cent recovery to unsecured creditors, and full repayment of the Bank.

Lower Bucks Hospital

Background and Situation:

• ESBA was appointed Financial Advisor to the Debtor of this historic not-for-profit acute care hospital facility which was almost out of cash, prompting closure concerns.
• The hospital had had four years of operating losses, and was unsuccessful in finding a strategic partner (pre-petition) or a stalking horse (post-petition). These circumstances constituted a cloudy picture of the future of the hospital.

Results and Accomplishments:

• In less than one year, ESBA was able to double the cash position, improve all supply chain management metrics, and achieve positive EBITDA results for seven of the eight months in bankruptcy, thereby stabilizing and revitalizing the operation.
• In addition to continuing to meet the health care needs of the local community, our work enabled the preservation of 1,100+ jobs.

Chydota America, Inc.

Background and Situation:

• This company is a major supplier of gravure printing services in North America. Prior to its Chapter 11 filing, the Company had gone through a shareholder dispute, which froze the company’s access to working capital and other inter-affiliate sales and technology support.
• This led to a significant decline in sales, a liquidity crisis, disarray in operations and financial reporting, and impeded strategic assessments. As a result, ESBA was retained as interim and court appointed financial advisor to the debtor.

Results and Accomplishments:

• By coordinating with the Company’s international affiliates, ESBA was able to successfully restructure operations and approximately $50 million of financial obligations, resulting in confirmed plan of reorganization in 81 days in Southern District of New York.
• The Company was repositioned with a stronger management team and financial status, thereby having maximized the interests of stakeholder, employees (in the hundreds throughout Europe, Asia and North America) and many suppliers.

Building Materials Holding Corporation

Background and Situation:

• At one time, Company had sales of $3 billion, was a publicly-traded supplier of building materials to residential home builders. Sales were dropping, reflecting the economic pressure in this sector.
• Business was having difficulty adjusting the scale and infrastructure of its business in the face of such precipitous revenue decline, and was forced to file for Chapter 11 after defaulting on its $300 million of debt. ESBA was selected as financial advisor to the unsecured creditors committee.

Results and Accomplishments:

• ESBA guided its constituency by negotiating and suggesting significant modifications to the Plan of Reorganization that ultimately increased the recovery to creditors, while saving 800 jobs in remote areas of the country.
• Our Firm brought an appropriate level of conservatism to the key planning assumptions underlying financial projections, particularly as related to housing starts in the next two years. This enabled the Company to gain credibility with both outside stakeholders and lenders who had become hostile and threatened to not support the Company.

Proliance International, Inc.

Background and Situation:

• Company was a $750 million manufacturer of metal fabricated parts for the auto and truck markets having both U.S. and European businesses. In addition to being in an industry already hard-hit by the economic downturn, the Company’s facilities were hit with a destructive tornado.
• As a result of the loss of a key facility and significant inventory, its customer “fill rates” were impaired. This resulted in the loss of 40% of its business and the necessity to file Chapter 11. ESBA was retained as financial advisor to the creditors committee.

Results and Accomplishments:

• The troubled operating units of the debtor were sold to separate buyers. In one instance, despite the existence of a challenging environmental condition, ESBA provided the debtor with over 100 additional strategic and financial buyers, thereby enhancing the asset sale process.
• The result was the best possible result for our client, the creditors, the continuation of a customer for many suppliers, and the preservation of 1,000+ jobs in a hard hit sector throughout the world.

Inacom Corporation

Background and Situation:

• This $5 billion revenue distributor of desktop computers and services to Fortune 1000 companies declared bankruptcy following severely adverse industry and market changes.
• Due to ESBA’s strong performance as FA to the Creditors Committee during the bankruptcy, the ESBA was selected as the Liquidation Agent pursuant to the confirmed Plan of Liquidation.

Results and Accomplishments:

• As Liquidation Agent, ESBA quickly and competently: 1) liquidated Inacom’s assets (including litigation settlements); 2) resolved numerous complex claims; and 3) distributed the proceeds from its initiatives.
• Despite the expectation of a recovery approaching zero upon the filing of the Chapter 11, general unsecured creditors received a distribution of about $65 million, representing 35% of their pre-petition claims.