Leadership

George P. Blanco

Managing Principal

Special Situations, Enterprise Performance Improvement

George, CTP, CIRA, is a managing principal in EMAGroup and leads the Business Restructuring and Enterprise Performance Improvement practices. 

 

With over 30 years’ experience, George brings extensive expertise providing both financial and operational advice to primarily middle-market companies in transition, serving as Financial Advisor and Chief Restructuring Officer (“CRO”) to companies, private equity, and lenders. His background serving as a consulting partner in the large firm accounting and consulting firm environment for over 20 years provides unique “how to” implementation experience advising divisions of Fortune 500 companies and businesses with revenues ranging from $75M to $3B.

 

George has a unique ability to quickly and efficiently examine and remedy business issues with management and those involving supply chain, operations, and complex capital structures.

Cedric Penix

Managing Director

Capital Solutions

Cedric leads EMAGroup’s Capital Solutions practice and brings over 30 years of experience and leadership in mezzanine lending, distressed M&A, private equity, and serving as an operating partner helping investors and owners achieve targeted performance goals.

 

Cedric’s career includes stints at two Big 4 accounting firms, as an investor and operating partner in private equity, and in operating management roles for companies in transition.

 

Cedric heads EMAGroup’s Capital Solutions practice and primarily focuses on helping companies through the refinancing process in situations that range from a need for increased capital, company restructuring or business sale. His extensive understanding of business analytics are critical to evaluating root-cause issues, and invaluable in advising C-level executives on strategic and operational change-management initiatives.

Michael Ozawa

Senior Advisor

Insolvency Strategies

Michael, CPA/CFF, CGMA, CIRA, CFE, leads the firm’s Insolvency Strategies practice which includes bankruptcy case management, out-of-court workouts, ABCs, debt restructurings, fiduciary roles, and forensic accounting & investigations.

 

While the focus of Michael’s work with EMAGroup is middle-market companies, he has over 30 years of experience working with a Big 4 accounting firm and private and public companies with revenues from $20 million to over $2 billion.

 

It is Michael’s extensive experience that gives him a unique ability to anticipate and solve lender, investor, and court-related issues before they become larger problems.

George Blanco

Managing Principal
Special Situations

George is a senior executive with over 30 years of industry and consulting experience, performing financial and operational management for both financially distressed and high-growth companies.

He has been involved in numerous interim C-level roles to stabilize business operations, rebuild management teams, and prepare businesses for refinancing or sale. Previously, George worked in the  large firm accounting and consulting environment for more than 20 years, which included serving as a partner and managing director in PricewaterhouseCoopers’ consulting and financial advisory services practices, and as the Western Regional Consulting Partner In-Charge for BDO Consulting.

 

George has a demonstrated background in working with management teams to help companies through difficult transition periods. He has successfully restructured and refinanced dozens of companies when the worst outcomes were expected by lenders, creditors, and investors.

 

Early in his career, George focused on business process re-engineering, post-acquisition integration and supply chain management for clients including divisions of Fortune 500 companies. Brand name clients have included Allergan International, Arco (AM/PM Stores and refinery distribution), Baskin-Robbins, Giorgio of Beverly Hills, Gateway Computers, Haagen Dazs, Herbalife International, International House of Pancakes (“IHOP”), MARS (Candy) Food, Monster Products, Smitty’s Super Valu, Nissan Motor Corp., Read-Rite Corporation, Technicolor, Warner Home Video, Tosco Corp/ConocoPhillips, and Unocal 76 Products, among others.

 

George is on the board of Methodist Hospital of Southern California, served on the board and as President for the Turnaround Management Association (TMA) – Southern California Chapter (2009-15), and continues to serve in National TMA roles. He received the 2015 Humanitarian Award from the National Jewish Health Foundation for community service and continues to serve as a National Trustee and supports other community charities.

 

George is a Certified Turnaround Professional (“CTP”) and a Certified Insolvency and Restructuring Advisor (“CIRA”). He earned his MBA in finance from the UCLA Anderson Graduate School of Management and his BA in economics and accounting from Claremont McKenna College.

 

Selected examples of George’s turnaround, operating and restructuring experience include the following situations: 

  • Chief Restructuring Officer: MonaVie — food & beverage health food business involving a multi-level marketing company with historical sales of $850 million. Multi-national business with operations in over 20 countries. Successfully oversaw the complete strategic repositioning of the business operations and managed the sale of the business to a strategic buyer to support the recovery for debt and equity holders.
  • Restructuring/Financial Advisor: Mi Pueblo Foods — $400 million family-owned Hispanic grocery retail chain. Restructured and stabilized operations through Chapter 11 proceeding after losing 85% of employees (3,100 of 3,800) from an I-9 audit. Worked with existing lender to support short-term operational stabilization, preparation of a comprehensive turnaround plan, helped manage process and operational changes to demonstrate a return to profitability, and helped source $50 million refinancing to protect founder equity.
  • Chief Restructuring Officer: Dillingham Construction Company — $1.2 billion of annual sales among five divisions, operating in Hawaii, San Francisco, San Diego, Alaska, Florida and internationally. Dillingham had over $800 million of bonded projects during the restructuring process and was involved in infrastructure construction, road construction, industrial building construction and home building. The engagement involved managing day-to-day working capital requirements over an 18-month period, negotiating with the bonding company for ongoing and new projects, winding down of selected projects, resolving construction-related deficiencies, shortfalls and disputes, monitoring new business opportunities and existing backlogs, supervising, and helping negotiate the sale of divisional operations. Negotiations also involved working with bondholders, bank lenders, and working with the bonding company to finance completion of selected projects.
  • Chief Restructuring Officer: Monrovia Nurseries – family-owned nursery grower with $200 million historical gross revenues. Restructured business operations and renegotiated $100 million line of credit with their bank group. Managed downsizing process and strategic repositioning of business operations, provided interim Chief Financial Officer support, and served as ongoing business advisor through subsequent acquisitions and financing initiatives.
  • Chief Restructuring Advisor: Read-Rite Corporation — $1 billion in historical annual sales. Actions included the preparation of the business for sale, identifying value which preserved the going concern value of operations acquired by Western Digital Corporation, including manufacturing facilities in Thailand and the Philippines. Sale proceeds paid-off all creditors in full including secured lender, bond debt and unsecured creditors.
  • Chief Restructuring Officer: No Fear Retail — $75 million national retail chain with a highly recognized brand name. George was involved in stabilizing operations and coordinating the sale of the brand and retail operations for a premium value.
  • Restructuring/Financial Advisor: Driftwood Dairy — $110 million revenue business operations, worked with existing lender to a successful restructuring and refinancing, and helped complete successful sale transaction, providing full recovery to all stakeholders, including full returns to private equity firm. Association for Corporate Growth: Award Winner for “Reinventing Finance & Operations 2015.”
  • Restructuring/Financial Advisor: Rural Telecommunications Provider — restructuring over $300 million in governmental loans and bond debt, involving negotiations with the Department of Justice and bondholders. Operations included long distance, local loop, internet, undersea cable, and cellular connectivity.
  • Chief Executive Officer: National Telephone Communications/Incomnet Communications – national telecommunications provider, licensed in 48 states for long distance. Restructured public company through Chapter 11 to private ownership. Launched new product lines including local loop, commercial internet services and cellular products, and developed new sales distribution channels.
  • Chief Restructuring Officer: Second Chance Body Armor — $100 million Revenue Company. Reported to board of directors following termination of CEO. Supervised and restructured all aspects of operations including manufacturing changes, price increases, and large contract sales including Los Angeles Police Department and New York State Troopers. Testified before the Department of Justice, negotiated terms with the Department of Defense, and reported to a working group of 34 state attorneys general. Managed the sale through auction process for roughly $50 million, paying off $25 million bank debt and all trade creditors in full.
  • Chief Restructuring Officer: Bordiers Nurseries — $90 million revenue commercial nursery grower, selling to big box retailers. Management team resigned and went to competitor owned by a hedge fund hoping to collapse company and then buy out assets in liquidation. Stabilized business operations while promoting head of sales to serve as CEO and restructuring business operations to reduce costs and continue planting operations. Managed pay-down of loan to Union Bank and prepared company for eventual sale to competitor as a going concern.
  • Restructuring/Financial Advisor: Builders TradeSource Corp. — $170 million in annual revenue. Served as advisor regarding restructuring and the downsizing of infrastructure construction contractor involving underground utilities, road construction, and municipal projects related to electricity, water, cable and sewage; additional construction included housing related infrastructure and electrical contracts. Worked with the lenders and the company to analyze and negotiate working capital requirements, and to monitor feasibility and pricing of new projects, product line profitability and bonding requirements needed for selected products. Evaluated and helped develop forecasts, backlog reports, work-in-progress reporting, and provided oversight on project completion procedures.

Additional examples of experience:

George’s consulting experience includes manufacturing plant consolidations, materials handling infrastructure projects, supply chain/logistics, business process re-engineering, operational restructuring, financial and manufacturing systems implementation, post-acquisition integration, and working capital improvement for middle-market companies and divisions of Fortune 500 companies across multiple industries.


His restructuring experience includes numerous out-of-court workout cases which involved serving as crisis manager, Chief Restructuring Office (or Advisor) and business transformation agent, including preparation of turnaround plans, revised financial projections, and implementation programs to achieve improved profitability and cash flows to support negotiations with lenders and other parties-in-interest.


Sample engagements by industry sector:

  • Construction: Restructuring advisor and CRO to construction-related companies ranging from $70 million to more than $1.5 billion in revenue including cost management, project analysis, bonding arrangements, asset sales and negotiations with all parties-in-interest to improve recoveries and successful restructurings. Companies include Alamillo Rebar, Builders Trade Source Corporation, Dillingham Construction (commercial, residential, dredging, road), CalMat, Morrison Knudsen, North American Conveyor, SCI (road construction), Tosco Corporation and Bayway Refining Co. (refinery turnaround process) and the Los Angeles Community College District.
  • Retail/Consumer Products: Grocery, apparel, furniture, and consumer goods – including four-wall profit optimization, store closings, merchandise management, information technology data optimization and negotiations with all parties-in-interest. Sample cases include: Mi Pueblo Foods ($400 million revenue), Tracy Evans (restructuring of $250 million revenue teen apparel), Monster (Cable) Products, Discount Tire Centers ($200 million revenue regional 100 plus tire store retailer), Crazy Shirts, Conlin’s Retail Furniture Stores (mid-west multi-state retailer), International House of Pancakes (IHOP), Vien Dong ($150 million regional ethnic grocery store chain), Smitty’s Super Valu ($850 million revenue grocery retail chain), Nevada Bob’s, Chick’s Sporting Goods, G.I. Joe’s Sporting Goods, Pharmavite, Li & Fung (due diligence/transaction support in apparel industry), USC University Bookstore (operational transformation project) and Glen Ivy Hot Springs (regional hospitality operator). Additional cases involved assisting businesses stabilize relationships with existing lenders and creditors, and/or to obtain new financing.
  • Food & Agriculture: Operational turnaround and business restructuring services for food processing and agriculture businesses including Baskin-Robbins, Bordiers Nurseries, Haliburton Foods, Hansen Food Service, Gruma Corp (Mission Foods), MARS, Inc. (Ethel M Chocolates, Pedigree), Haagen Dazs, Monrovia Nurseries, Hamakua Sugar, Pulmuone Foods (food processing LEAN, production planning and factory floor process workflows), Western Farm Beet Growers Cooperative, Zacky Farms, Oahu Sugar, Unified Grocers, among others.
  • Healthcare: Cash management, process improvement, bankruptcy and debt restructuring healthcare engagements for Community Health Clinics of the Central Coast, Vista Health System, Daniel Freeman Hospital, Grady Memorial Hospital, and the Arizona Healthcare Cost Containment System; and board member for Methodist Hospital of Southern California, California Hospital Association – advisory board forum.
  • Oil & Gas: Managed the implementation of financial and operating systems for Tosco Refining Company and Unocal 76 Refining and Distribution (which included serving as interim CIO following a previously failed system implementation). Served as consulting advisor to Tosco Corporation with over $3 billion in annual revenues, including $100 million plus bi-annual construction spending projects related to the turnaround process in refinery operations. Consulting efforts included evaluating and monitoring all aspects of construction-related management for a $1.5 billion refinery operation. Work involved evaluating, monitoring, and resolving issues related to design, construction management, payments with sub-contractors, change orders and project wrap-up issues. Subsequent projects involved leading a consulting and management team in process re-engineering project related to the integration of an Exxon refinery acquired in Bayway, New Jersey, which involved the build out of back office operations including accounting and commodity trading systems, and redesign of work processes to eliminate 30% of historical cost structures while increasing overall per day refining capacity by 50%. Due diligence services for Petrobras (Brazilian oil company) regarding the acquisition of U.S.-based Astra Oil Co (oil & gas trading operations) and other U.S.-based refining operations.
  • Other Client Consulting Experience: Aviation Technical Services (transformation project over $300 million airplane maintenance, overhaul and repair operations), Avante (restructure of Amware Logistics), Goldman Sachs (due diligence services on various telecommunications companies), Endeavour Capital (acquisition of logistics companies), Nissan Motor Corporation, People Support (call center operations), Yucaipa Companies (acquisition of Venture Industries), Embassy Suites (financial systems), Equitable Life Leasing (financial systems), Freedom Newspaper (financial advisory), GE Commercial Services (due diligence/transaction support), and LG Telecommunications.

213-479-7900

GBlanco@EMA-Group.com

Cedric Penix

Managing Director
Capital Solutions

Cedric J. Penix, MBA, is a Senior Advisor at EMAGroup. He has over 30 years of experience in finance, accounting, acquisitions, consulting and private equity.

Cedric leads EMAGroup’s Capital Solutions practice which focuses on helping companies through the refinancing process. EMAGroup’s clients’ needs range from requiring a simple refinancing to increasing liquidity availability and flexibility to more complicated financings that are part of a comprehensive restructuring and realignment of capital structure. Additionally, the restructuring process can often result in the sale or change of equity control. Cedric works with clients to optimize structuring and value.

 

Throughout his career, Cedric has assisted companies in transition whether as part of a capital raise, debt restructuring, sale transaction, or comprehensive strategic repositioning process. His experience includes working with stable businesses seeking out new initiatives, high-growth companies with working capital management issues, and distressed company situations involving business restructuring and turnaround initiatives. Cedric has extensive experience in business analytics critical to evaluating root-cause issues, and in advising C-level executives on strategic and operational change-management measures. His client support includes providing guidance and hands-on assistance in implementation of key operating initiatives.

 

Prior to joining EMAGroup as a senior advisor, Cedric was a Managing Director at Caymus Capital Group, LLC, and Executive Vice President/Partner at Fulcrum Capital Group, LLC, both private equity enterprises. As a private equity partner-in-charge of monitoring investments, he has been involved in interim C-Level advisory roles to assess operations and financial performance, managing senior and mezzanine lender relationships, business process restructuring, and preparation of companies for capital raise or sale process.

 

Cedric’s experience also includes business value-driver analysis, capital sourcing of mezzanine, equity and debt, pre-investment due diligence and diligence support, investment structuring/restructuring, and post-acquisition integration/implementation management.

 

Early in his career, Cedric was a Manager with PricewaterhouseCoopers’ Financial Advisory Services group, providing clients services including quality of earnings assessments, collateral base reviews, acquisition due diligence reviews, bankruptcy support, sell-side support, and occasionally, forensic accounting reviews. He also served as a senior auditor for Intermedics, Inc., a medical devices manufacturer, and Arthur Anderson, LLC, where he led and conducted financial audits, internal audits, business process reviews, gross margin/cost of sales analysis, inventory counts and valuations, organization efficiency reviews and other special projects as assigned.

 

Cedric currently serves as Chairman of the Board for a Los Angeles-based church and Board member for a local soccer league. He earned his MBA in finance and entrepreneurial studies from the UCLA Anderson Graduate School of Management and his BSBA in accounting from the University of Arkansas, Fayetteville.

 

COMPANY/DEBTOR RESTRUCTURINGS

While partner at Fulcrum Capital Partners, L.P. and Caymus Capital Group, served on investment committee, conducted or participated in pre-investment diligence and monitored portfolio company performance. Shown below are examples of specific experience:

  • Served as Interim CFO for the restructuring of a portfolio company in the transportation industry. Negotiated revisions to the secured lending agreement. Analyzed profitability by division. Developed and implemented plan to “shed” unprofitable assets, pay down debt, “right size” the cost structure and focus on profitable business.
  • Implemented a route profitability analysis in support of a program to rationalize route planning for a food manufacturer and transportation company.
  • In conjunction with insolvency attorneys, developed a Chapter 11 plan of reorganization for a light manufacturer. Representing the “new” equity, presented and defended proposed plan of organization with all stakeholders, including secured creditors, unsecured creditors, mezzanine and other equity investors.
  • Conducted analysis to determine best course of action for a “troubled” portfolio company. Analysis included a thorough assessment of options, including assignment for the benefit of creditors, Chapter 11 reorganization and Chapter 7 liquidation.
  • Routinely developed, implemented, modified and/or monitored the following “tools” for use by portfolio company management:
    • Management Dashboard Reporting
    • 13-Week Cash Flow Forecasting Processes
    • Rolling Analysis of Collateral
    • Monthly, Quarterly and Annual Financial Reporting Processes
    • Annual Budgeting/Forecasting Processes
  • Routinely interfaced with secured lenders to assure portfolio company compliance with covenants. When necessary, took definitive action to correct defaults.

  • Routinely assessed portfolio company management for competency, capability and capacity.
    Investor representative to portfolio companies’ Boards of Directors.

LENDERS & BANK GROUPS

For a senior secured lender groups regarding their credit customers:

  • Assessing historical financial performance; determining and explaining “drivers” of losses.
  • Assessing lenders’ collateral and availability under the existing credit facilities.
  • Evaluating, developing, recommending, and/or monitoring a turnaround plan of recovery.
  • Developing 13-week cash flow forecasts/rollforward of borrowing base.
  • Developing presentation material and facilitating the refinance of the credit.
  • Managing due diligence process for potential finance organizations.

For a mezzanine lender regarding their credit customer (in addition to items above):

  • Evaluating potential options for “exit.”
  • Review and evaluate the lender’s rights for collection, collateral and information under the credit agreement.
  • Assess company’s growth/turnaround plans and determine range of additional capital required.
  • Evaluate company liquidation options; develop and present liquidation waterfall.

TRANSACTION ADVISORY SERVICES/SUPPORT

Served as a Manager at PricewaterhouseCoopers’ Financial Advisory Services Group. While there, provided multiple services for unique client types, including senior secured lenders, mezzanine lenders and private equity investors. Provided services for over 40 transactions in a three-year period.

Shown below are examples of selected transactions:

  • For a subordinated debt lender, led the pre-investment due diligence assignment on an acquisition of a $70M light manufacturer.
  • For an equity sponsor, led the pre-investment due diligence assignment on an acquisition of a national consumer retail brand.
  • For an asset-based lender, led the pre-funding collateral due diligence on multiple acquisition and re-financing transactions.
  • For an equity sponsor, led the pre-funding quality of earnings review of a potential acquisition of a middle market manufacturing concern.
  • For a strategic acquirer, led the pre-investment due diligence assignment for their aerospace manufacturing expansion to the U.S. Analyzed potential synergies and assisted management in developing a post-acquisition integration plan. Monitored company performance post-transaction.
  • For a strategic seller, led the sale-side advisory and diligence engagements.
  • Prepared the investment memorandum and marketed the transaction to potential buyers. Company was sold in excess of 7x EBITDA.
  • For an equity sponsor, led pre-investment analysis and diligence for the acquisition of a division of a large manufacturer. Conducted “stand alone” analysis and associated quality of earnings assessment.

(310) 936-0909‬

CPenix@EMA-Group.com

Michael Ozawa

Managing Principal
Insolvency Strategies

Michael M. Ozawa, CPA/CFF, CIRA, CFE, CGMA is a Managing Principal at EMAGroup and leads the firm’s insolvency practice.

He has over 30 years of experience in restructuring, insolvency, bankruptcy, and transaction advisory services, including overseeing the administration of dozens of companies in Chapter 11 on behalf of debtors, lenders, and creditors’ committees. Michael has also served fiduciary roles as Chapter 7 trustee, liquidating trustee, and independent board member.

 

Previously, Michael was a partner in the bankruptcy and restructuring group at PricewaterhouseCoopers (“PwC”) and a senior managing director in the corporate finance and restructuring group at FTI Consulting. He is a Certified Insolvency & Restructuring Advisor (“CIRA”), a Certified Public Accountant with a financial forensics specialization credential (“CPA/CFF”), a Certified Global Management Accountant (“CGMA”) and a Certified Fraud Examiner (“CFE”).

 

Clients have ranged from private companies with $20 million in revenue to public enterprises with revenues exceeding $2 billion. Michael has experience across many industries and sectors, including retail and consumer products, light manufacturing, food, logistics and distribution, software, technology, building products, automotive, airlines, financial services, and media and telecom.

 

Michael works side-by-side on a daily basis with senior management and operating teams to develop and coordinate execution of restructuring plans, coordinating with treasury on cash management and building out the framework for cash flow budgets, analysis and maintenance of 13-week rolling cash forecasts, helping negotiate with senior secured lenders and unsecured creditors, and coordinating with other restructuring professionals, such as attorneys, investment bankers and appraisers. In this regard, Michael focuses on relieving management of the cumbersome and time-consuming restructuring process, so that management can focus on core business operations.

 

Michael also manages capital sourcing mandates, sales processes, forensic accounting analyses/investigations, and litigation support matters. Related client services include sell-side quality of earnings (“QOE”), business plan reviews and preparation, due diligence support, sell-side due diligence support, review of company financial and operating results, coordination with other transaction professionals such investment bankers, alternative capital sources, diligence team, and helps manage the transaction structuring process.

 

Michael is a board member of the Turnaround Management Association Southern California Chapter, a member of the Association of Insolvency and Restructuring Advisors, the Los Angeles Bankruptcy Forum, the American Bankruptcy Institute, the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants. Michael earned his Bachelor of Arts degree in Economics – Business from the University of California at Los Angeles.

 

Below is a selection of Michael’s experience that provides a unique background in restructuring and insolvency matters. His experience permits him to provide added value for debtor clients by allowing him to anticipate and solve lender, investor, and court-related issues before they become larger problems. Michael’s capabilities are unmatched even among the biggest firms in the country thus allowing him to provide unparalleled experience for middle market clients.

 

COMPANY/DEBTOR RESTRUCTURINGS

  • For a consumer products company, Michael assisted the CFO and the finance and accounting team with managing cash; improved working capital liquidity; negotiated faster customer payments; prioritized and then communicated with vendors to structure and schedule vendor payments; identified excess assets and aged inventory for immediate disposition; shut down non-core foreign operations; established working relationships with the incumbent lenders and arranged for new financing.
  • For a retail company, Michael implemented a four-wall store analysis in support of a store closure program to rationalize the company’s mall-based footprint. For a national theatre company, assisted in the pre-bankruptcy planning and reorganization efforts in the Regus Business Centers Corporation bankruptcy.
  • For a major national retailer, led the liquidation and wind-down in the House2Home bankruptcy.
  • For the debtors, led the restructuring assignment in the Thermatrix, et al., bankruptcy.
  • For a major national retailer, led the business regeneration engagement for Musicland, including negotiation of revolving credit facility, design and implementation of store-closure program, and planning for possible bankruptcy.
  • For a large real estate developer, quantified tax consequences arising from the realignment of its business operation, the restructuring of its debt portfolio, debt forgiveness, foreclosures or deeds-in-lieu of foreclosure, and evaluating the impact on its cash flow requirements. Furthermore, proposed various structures to the lenders to meet their segregation requirements while minimizing the tax impact on the transfer of property and partnership interests into the new entities.
  • For a major airline, reviewed the income tax returns previously filed and analyzed the tax impact of future tax liabilities in the projected financial information contained in America West’s Plan of Reorganization.
  • For a regional retail chain, evaluated the tax consequences arising from debt discharge, and analyzed tax impact of future tax liabilities contained in the debtor’s projected financial information contained in its Plan of Reorganization.

LENDERS & BANK GROUPS

  • For the bank group, led the negotiations of the amendments to their $150 million debt facility with a troubled disk drive manufacturer.
  • For the bank group, assisted in the negotiations of a $75 million credit facility for a multi-national office products company.
  • For the bank group, assisted in the strategy sessions for the financial restructuring of a large theater chain, including the tax implications of various proposed reorganization plans.
  • For the secured lender group, led the assignment in the Matthews Studios bankruptcy.
  • For a secured lender, assisted in the negotiations for amendments to the credit facility for a women’s apparel designer and manufacturer.
  • For a group of public investment funds, assisted with the reorganization of the investment funds, including the elimination of certain creditors and the transfer of the real estate portfolio into a newly-created REIT.

TRUSTEE & RELATED

  • For the debtor, was elected the Chapter 7 trustee in the NorthPoint Communications Group bankruptcy, including successfully defending the estate against a substantive consolidation motion brought by the Chapter 7 trustee of a subsidiary corporation.
  • For the Chapter 7 trustee in Financial Corporation of America, assisted counsel in contesting pre-petition tax assessments, negotiated settlement agreements with the Department of Justice and the California Franchise Tax Board, and provided tax compliance services during the period of administration of the estate.
  • On behalf of the Chapter 7 trustee, led the investigation into allegations of the debtor’s improper use of investor proceeds through various international entities controlled by the debtor. On behalf of the SEC-appointed receiver in the Greg Setser/IPIC receivership, participated in the initial asset seizure, conducted witness interviews and performed an accounting and tracing of investor funds to multiple foreign jurisdictions.
  • On behalf of certain defendants subject to the Chapter 7 trustee’s avoidance actions, led the forensic accounting analysis performed to determine whether the debtor operated a Ponzi scheme in the Reed Slatkin bankruptcy.
  • On behalf of the Chapter 7 trustee, led the forensic accounting analysis performed to prove a Ponzi scheme in the First Lenders Indemnity Corporation bankruptcy.

TRANSACTION ADVISORY SERVICES

  • For a subordinated lender, led the pre-investment due diligence assignment on an acquisition of a publicly traded $1 billion annual gross sales optical retailer.
  • For an equity sponsor, led the pre-investment due diligence assignment on an acquisition of a $4 billion annual gross sales building products distributor.
  • For an equity sponsor, led the pre-investment due diligence assignment of a section 363 purchase of a $300 million annual gross sale competitive local exchange carrier (CLEC).
  • For a potential asset-based lender, led the pre-funding collateral due diligence on an acquisition of a $100 million annual gross sales display manufacturer.
  • For an equity sponsor, led the pre-investment due diligence assignment on an acquisition of a cluster of hospitals with net revenues of over $1 billion.
  • For an equity sponsor, led the pre-investment due diligence assignment on a section 363 purchase of an $850 million annual gross sales carpeting and apparel manufacturer.
  • For an equity sponsor, led the pre-investment due diligence assignment on an acquisition of an $800 million annual gross sales distressed, diversified, high-tech manufacturer.
  • For an equity sponsor, led the pre-investment due diligence assignment on an investment in a distressed $2.5 billion annual sales retailer.
  • For an equity sponsor, led the pre-investment due diligence assignment on an acquisition of a prison phone system carved out of a public entity.
  • For an equity sponsor, led the preparation of a portfolio company’s carve-out financial statements in anticipation of the portfolio company’s public offering.

FORENSIC ASSIGNMENTS

  • For the Board of Trustees of an educational research institution, directed the investigation into the Office of the Inspector General’s inquiry of various operating practices, including task order funding, cost accounting, and compliance with government contract regulations. The investigation also encompassed the Health and Human Services letter of credit reimbursement procedures, accounting processes and internal audit issues. The period of investigation spanned over six years during which time the organization received approximately $7 billion in federal funds (approximately $100 million per month).
  • On behalf of the SEC-appointed receiver in the Greg Setser/IPIC receivership, participated in the initial asset seizure, conducted witness interviews, and performed an accounting and tracing of investor funds to multiple foreign jurisdictions.
  • On behalf of the Chapter 7 trustee, led the forensic accounting analysis to track the receipt and disbursements of funds through multiple related entities, investigate the debtor’s businesses and business affairs, and trace assets throughout the world.
  • On behalf of certain defendants subject to the Chapter 7 trustee’s avoidance actions, led the forensic accounting analysis performed to determine whether the debtor operated a Ponzi scheme.
  • On behalf of the Chapter 7 trustee, led the forensic accounting analysis performed to prove a Ponzi scheme in the First Lenders Indemnity Corporation bankruptcy.

SELECTED UNSECURED CREDITORS’ COMMITTEE ASSIGNMENTS

  • For the unsecured creditors’ committee, led the analysis to help Factory 2-U reorganize in a difficult retail environment and maximize recovery to the creditors.
  • For the unsecured creditors’ committee, led the analysis to maximize their recovery as a result of the sale of BMK’s distribution business.
  • For the creditors’ committee representing more than 200 quasi-governmental agencies (school districts, cities, transportation agencies, water districts and sanitation districts), led the creditor-assignment in the County of Orange, California, bankruptcy. These entities invested in the failed $7 billion investment pool in the largest municipal bankruptcy in United States history. In addition, documented the procedures used to account for creditor funds and to allocate interest, developed strategies for recovery, and assisted in the negotiations of settlements approved by the bankruptcy court.
  • For the unsecured creditors’ committee in Circle K Convenience Stores, analyzed the tax examinations in progress, evaluated the settlement agreements between the debtor and the tax authorities, and critiqued the pre-petition tax liability payments and the future tax liabilities contained in the debtor’s projected financial information contained in its Plan of Reorganization

SELECTED DUE DILIGENCE / QUALITY OF EARNINGS EXPERIENCE

  • For the asset-based lenders, led the pre-funding due diligence on a diversified, international vision care provider with over $1 billion in annual revenues.
  • For the equity sponsor, led the pre-investment due diligence assignment on a potential investment, primarily focusing on a collateral review for an asset-based lender, of a $4 billion annual gross sales building products distributor.
  • For the equity sponsor, led the pre-investment due diligence assignment of a potential section 363 purchase of a $300 million annual gross sales CLEC.
  • For asset-based lender, led the pre-funding collateral due diligence on the asset-based loan funding part of a potential acquisition of a $100 million annual gross sales display manufacturer.
  • For the equity sponsor, led the pre-investment due diligence assignment on a potential section 363 purchase of an $850million annual gross sales carpeting and apparel manufacturer.
  • For the equity sponsor, led the pre-investment due diligence assignment on a potential acquisition of a $50 million annual gross sales international horticulture company.
  • For the equity sponsor, led the pre-investment due diligence assignment on a potential investment in an $800 million annual gross sales distressed, diversified, high-tech manufacturer.
  • For the equity sponsor, led the pre-investment due diligence assignment on a potential investment in a distressed $2.5 billion annual sales retailer.

SELECTED LITIGATION AND FORENSIC ACCOUNTING EXPERIENCE

  • Analyzed intercompany transfers of funds among members of a group of companies under common ownership and developed strategies and prepared materials in defense of potential fraudulent transfer avoidance actions and violations of California solvency statutes.
  • On behalf of certain record labels, performed financial analysis in the Toni Braxton bankruptcy.
  • On behalf of two of the investor banks, analyzed competing settlement offers and the Chapter 7 trustee’s evaluation of the various settlement “bids” and assisted in the pricing of the “auction-style” settlement negotiations in the Commercial Money Center bankruptcy.
  • For the defendant in a breach of contract dispute arising from the purchase of minority shares and the use of tax benefits, formulated liability defense strategies and calculated damages under various hypothetical scenarios.
  • For the Board of Trustees of an educational research institution, directed the investigation into the Office of the Inspector General’s inquiry of various operating practices, including task order funding, cost accounting, and compliance with government contract regulations. The investigation also encompassed the Health and Human Services letter of credit reimbursement procedures, accounting processes and internal audit issues. The period of investigation spanned six years during which time the organization received approximately $7 billion in federal funds (approximately $100 million per month).
  • For a public charity who received substantial government grant aid, directed an overseas investigation of a foreign currency exchange fraud, and prepared a report that described our findings, including recommendations for prevention of further fraud at other locations around the world. Our report was ultimately submitted to the U.S. Office of the Inspector General. Based on our report, the OIG determined that no further action was necessary.
  • For the Board of Directors of a publicly-held medical equipment manufacturer, participated in the case strategy development and directed one team investigating fraudulent accounting practices by the company’s employees, including uncovering the participants and the schemes used to manipulate the financial statements. The investigation spanned various operations across the United States and Europe. The effort included preparing a report to the Securities and Exchange Commission’s Enforcement Division describing the improprieties and persons involved.

 

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