A Pennsylvania-based plastic blow molding manufacturer that had experienced embezzlement from a former manager, leaving unpaid employee withholding taxes.
The unpaid employee withholding taxes resulted in significant fines from the IRS and levies on the Company’s bank accounts, receivables and customers, which resulted in the company filing for Chapter 11 bankruptcy protection and losing all customers but one.
Equity Partners was retained to find a buyer for the company and 40 days after our engagement we had identified two going concern buyers and four groups interested in the equipment. At the 40 day mark, a Chapter 11 Trustee was appointed to take over management of the company and made the decision to shut down operations and let all employees go.
The Trustee assumed Equity Partners’ agreement and, working in conjunction with the Trustee, we continued negotiations with all groups identified. An auction was conducted that resulted in a sale of the equipment at a price the going concern prospects were offering prior to the business shutting down.