EMAGroup/Enterprise Management Advisors, LLC | Assisting Companies in Transition
EMAGroup advises companies in transition, focusing on Special Situations, Capital Solutions, Enterprise Performance and Insolvency options to create value-driven solutions.
Distributor of automobiles and other motor vehicles and engines in the continental United States.
Revenue
$1.044 billion
Industry
Automotive
Services Provided
Fiduciary, Bankruptcy, Turnaround & Business Restructuring
Situation
Foreign-owned company had incurred excessive debt levels. The business had experienced declining market share for its products, compounded by numerous issues — unfavorable foreign currency exchange rates, rising costs associated with growing and maintaining a distribution system in the continental United States, a limited number of models in its line-up, and disproportionally high and increasing costs associated with meeting more stringent state and federal automotive regulatory requirements and potential litigation costs.
Accomplishments
Served as an independent board member to advise on the wind-down of the automotive distribution segment of the business.
Advised and approved the strategy to enter into new service and parts agreements with automobile dealers, achieving consensual rejection of pre-petition agreements and obtaining resolution of claims.
Reached an agreement with the parent company to subordinate its secured claim, support ongoing warranty and service obligations, and pay all general unsecured creditors in full.
Successfully moved the non-automotive segments into a Newco entity to continue that business in the continental United States.