USI Services Group, Inc.
Family owned provider of facility maintenance, security guard and event services.
The company primarily worked with major retail chains and other commercial venues which required arduous insurance policies and created significant risk for the company. A failed self-insurance program crippled cash flow and as a result of its inability to pay taxes, sizeable liabilities were incurred.
With no way to satisfy the tax obligations, the company was forced to file Chapter 11. A DIP lender was secured to fund operations in bankruptcy and Equity Partners conducted an extensive marketing process. Bids were solicited from multiple groups and an auction was scheduled.
At the auction, bids were negotiated to improve terms and price and the company chose to sell the security and facility management entities to one buyer while the landscaping and snow removal entities were sold to another. Both buyers were intimately familiar with the businesses and after a quick closing, operations continued without interruption. Employment for almost 1,800 individuals, including senior management was secured and recovery for the estate was maximized.