Case Study

International Automobile Distributor

Distributor of automobiles and other motor vehicles and engines in the continental United States.


$1.044 billion



Services Provided

Fiduciary, Bankruptcy, Turnaround & Business Restructuring


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.


  • 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.