Bank of America, Daniel Picmann

This letter serves to detail the impressive results from MorrisAnderson (MA) in their turnaround efforts of Cosmolab Inc. Through their superior strategic solutions, strong leadership capabilities, and determination, MorrisAnderson was able to successfully stabilize and rehabilitate Cosmolab Inc. which resulted in a very positive outcome for all stakeholders. MorrisAnderson was engaged by Cosmolab to provide an assessment of the situation which revealed exposure that was much greater than anticipated. Within a month, Morris Anderson had crafted a turnaround plan that was measurable and easy to comprehend. While Bank of America would not extend our exposure any further, we believed in the turnaround plan and allowed them to institute the plan. The MorrisAnderson team constantly met with us and kept us informed of the multiple programs in place to assist in improving the liquidity of the company. Each of the strategic milestones they had initially provided was met. The constant communication and achievement of plans made our job of monitoring this non-performing debt a much easier experience. As the turnaround progressed, MA was able to manage their turnaround efforts during a very tight liquidity situation while also working with suppliers and vendors of Cosmolab. They worked on keeping everyone informed and therefore this turnaround continued unhindered by the suppliers or customers. During the first sale of the Oxnard division, MA was able to keep the buyer interested and the purchase price stable even though the current year’s sales numbers were trending down. During the second sale of the Cosmolab division, MorrisAnderson helped the foreign buyer understand the situation and when it was deemed necessary to take the company into bankruptcy, they helped the buyer understand and become comfortable with the process. They worked extremely hard to find other interested parties to participate in the 363 auction and the recovery increased by over 25%. MA achieved a plan for Cosmolab that succeeded above anyone’s expectations. Bank of America was looking at a significant loss on this loan and at the end of the day, the loss was equivalent to the cost of the bankruptcy. MorrisAnderson took a company whose management team was lost and rebuilt into an organization that shows incredible strength. We believe that MorrisAnderson did a job that is quite impressive.

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