Bank and FDIC Workouts

HAI has the experience and ability to assist our clients in the workout of their debts with banks and the FDIC. We specialize in developing action plans and advising our clients on the appropriate courses of action that will get their business back to a profitable status. This process can include a forgiveness of a portion of the debt, a restructuring of the debt, organizational restructuring, or in extreme circumstances, a partial liquidation of collateral. This service is only effective for clients with income producing property. This division is headed by G. Heller, specialists in the workout field. Whatever your restructuring needs may be, HAI can provide you with a professional consultation to provide your business with an action plan tailored to your needs.

Workout without Bankruptcy

In today's perilous business environment, the mantra of restructuring has become the concept "du jour." It seems like everyone, from company managers to investment bankers, has become sensitized (if not always expert) about it. Prominent turnaround veteran Jerry Heller delves beneath the sizzle and gets to the multiple issues facing investors, directors, investment bankers, entrepreneurs, and their financial and legal advisors when a restructuring is demanded. The stability of so many middle-market companies is being threatened in this economic environment. Even in extreme cases, there are two vital truths about under-performing companies -

1. More money is not an adequate response.
2. Filing for bankruptcy should only be a last resort.

Mr. Heller shows you how when companies are failing, it's because timely actions are not being taken. Lack of cash is not the problem but the result (symptom) of significant operating and strategic failures left unattended by management. Typically, entrepreneurial managers have no expertise or inclination to restructure a company that is under duress. And directors are hesitant to challenge the inaction of the management team -- despite the fact that they're at personal risk for failing to exercise their fiduciary responsibility to creditors.

• Why do companies fail?
• What are the key factors missing in most troubled companies?
• Tools used to identify operating problems affecting performance.
• How to locate internal sources of cash.
• Reopening supply lines to support operations.
• Management behavior and disciplines required to effect a right-sizing.
• Structuring a compromise between a company and its secured creditors.
• How much forgiveness can you ask for, and yet maintain credibility?
• Options available to negotiate compromises with unsecured creditors.
• Personal liability involved with trust funds. Exposure from surprising quarters.
• Why and when should current management be relieved at least temporarily?
• What are the cultural issues that can only be addressed by a change in leadership?
• Managing assets to maximize liquidity.