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, 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.

Metaldyne Corporation Liquidating Trust

Background and Situation:

• ESBA was retained as Liquidating Trustee to manage the orderly wind-down of the business and the liquidation of its assets.
• This involved the sale of two facilities (1.1 million square feet, 103 square feet, respectively); the reconciliation of a $300 million+ claim pool involving over 3,000 claims across 12 foreign entities; and communication with numerous stakeholder groups with differing priorities.

Results and Accomplishments:

• Enhanced financial recovery to the Unsecured and Secured Creditors, in addition to the settlement of substantial, diverse post-confirmation litigation, including with several states, the IRS, foreign taxing authorities, and city governments.
• Exceeded financial recovery expectations for all claimants and constituencies, including through effective disposal of all real estate properties. Resulting substantial cash flow and tax revenue benefitted both the estate and the local communities, which were hit hard by the economic decline.

Trans Healthcare Entities Inc.

Background and Situation:

• The Company, a $1.2 billion nursing home operator with 44 facilities located in Maryland and Ohio, experienced extreme cash tightness due to the precipitous reductions in healthcare reimbursement levels.
• In order to maximize recovery to unsecured creditors (claims of about $20 million), a receivership was filed and granted; most employees were discharged, and some former Directors were exposed to potential fraud actions. As Receiver, ESBA took control of all real and personal property, tangible assets, operations and business affairs in an effort to maximize the financial realization.

Results and Accomplishments:

• ESBA: 1) completed the asset sale of 44 nursing and rehabilitation facilities, and the wind-down and closing of the corporate office; 2) managed multiple malpractice litigation cases in numerous states; and 3) generated significant additional cash through vigilant A/R collections.
• As a result of achieving a recovery 200% above expectation, ESBA was able to fully pay off the secured lender ahead of schedule; provide a healthy recovery to unsecured creditors; and facilitate the transfer of many residents and employees to several of the purchasing health care entities.