Mill Creek, Washington
Recycler of refrigerators and other energy-inefficient appliances. $50 million sales. $15 million debt. Contracted with all the major utilities providers across the USA to rebate purchases of energy efficient refrigerators. Locations in 28 states.
- The Company was experiencing liquidity issues caused by rapid expansion and increasing G&A costs.
- Contractually required vendor payments were delinquent causing slow down on new business development.
- Covenant defaults caused the company to enter into a lender forbearance agreement.
- Consumer reimbursement payments became delinquent causing utility contracts to withhold payments.
- MorrisAnderson discovered irregularities in rebate and other financial accounting.
- MorrisAnderson was appointed State Receiver of the Company.
- Determined the company was $3 million to $5 million delinquent on consumer rebate payments and as a result the business had to be shut down.
- Performed a forensic analysis on rebate and other accounting to determine proper set-off adjustments for utility contracts and to pursue settlements on all contracts.
- Shut down all 28 state processing centers all across the country, removed and sold assets and negotiated settlements with landlords to mitigate potential claims.
- Handled consumer complaints and State District Attorney issues and resolved fraud claims.
- Able to settle all utility accounts and resolve contract deficiencies and collect residual accounts receivables.
- Settled all lease holder claims and mitigated contingent environmental issues.
- Compiled evidence and support for lenders claim against owners that resulted in a large settlement with the owners.
- The Receivership returned a value of $6 million greater than estimated liquidation value for the secured lender.