working with financially distressed customers
DESCRIPTION
Western Hardwoods Association June 26, 2006 Las Vegas, NV. WORKING WITH FINANCIALLY DISTRESSED CUSTOMERS. Jim Jensen, CCE, CEW. International Business Credit Consulting National Association of Credit Management Oregon – Distressed Business Services. Qualifications. - PowerPoint PPT PresentationTRANSCRIPT
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WORKING WITH FINANCIALLY DISTRESSED CUSTOMERS
Western Hardwoods AssociationJune 26, 2006Las Vegas, NV
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Jim Jensen, CCE, CEW
International Business Credit Consulting
National Association of Credit ManagementOregon Distressed Business Services
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QualificationsCCE Certified Credit ManagerCEW Certified Expert WitnessB.S. Degree no surprise there!Advanced education - Dartmouth, Harvard, etc.
THE MOST IMPORTANT IS
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Q B E The rest doesnt mean anything without this
Weve all earned it or we wouldnt be here
Cant be gained except through hard work
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QUALIFIED BYEXPERIENCE!
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The TeamList CEO and key management by name.Include previous accomplishments to show that these are people with a record of success.Summarize number of years of experience in this field.
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NACM OREGONDISTRESSED BUSINESS SERVICES
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Mission StatementThe mission of the NACM Distressed Business Services is to assist and facilitate in the return to profitability of a business that is experiencing temporary financial distress. As a member owned association of business credit professionals, it is incumbent on us to use our knowledge and expertise as best we can to work with all parties in restructuring a company.
In those situations where it is not possible to rehabilitatethe company, it then becomes our responsibility to assist in an orderly liquidation of the business and its assets, protecting the interests of both the secured and unsecured creditor community..
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NACM OREGON SERVICESCredit ReportsIndustry Credit GroupsCollectionsEducationDistressed Business ServicesAccounts Receivable AnalysisCredentia Staffing Services
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DISTRESSED BUSINESS SERVICESASSIGNMENT FOR BENEFIT OF CREDITORS
RESTRUCTURING
APPRISALS, AUCTIONS AND LIQUIDATIONS
ACCOUNTS RECEIVABLE ANALYSIS
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Distressed Business Services (continued)REPRESENT INDIVIDUAL CREDITOR ON UNSECURED CREDITORS COMMITTEES
SECRETARIAL AND ADMINISTRATIVE SERVICES FOR CREDITORS COMMITTEES
FACILITATE PREPACKAGED BANKRUPTCY
ABILITY TO TALK WITH OTHER CREDIT PROFESSIONALS IN THEIR OWN LANGUAGE
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BANKRUPTCY ALTERNATIVESExtensions or Settlements
General Assignment for Benefit of Creditors
General Assignment for Benefit of Creditors
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EXTENSIONS OR SETTLEMENTS
Functions like a Chapter 11 ReorganizationMeeting of creditors is calledUCC-1 executed to prevent run to courthouseCreditors committee formed, equitable plan formulated
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Creditors vote on acceptance of workout plan
Implement and fund plan, distribute pro-rata payments, close case
Flexible = speed, less cost, efficient
Plan can be used as a reorganization plan in a pre-packed bankruptcy if a hostile creditor group attempts to stop the workout plan
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GENERAL ASSIGNMENT FOR BENEFIT OF CREDITORSFunctions like a Chapter 7Disinterested 3rd party acts as fiduciaryAssets sold, usually at auctionSales done for cash which speeds distributionAll other assets converted to cashDistribute available funds pro-rata, close caseDoes not provide discharge of debts
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PREPACKAGED BANKRUPTCYWORK WITH MANAGEMENT AND COUNSEL IN THEINITIAL PROCESS (I.E. PREPARING AND MAILING OF NOTICES)
FACILITATE THE ORGANIZATION OF THECREDITORS COMMITTEE
ASSIST IN NEGOTIATIONS BETWEEN CREDITORSAND DEBTORS
ASSIST IN PREPERATION OF REORGANIZATION PLAN(S)
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CHAPTER 11 BANKRUPTCYReorganization Debtor in Possession Potential for survival Ability to make payments Settlement options
Sale of business units
Liquidation of assets
No longer option for many small to medium sizedbusiness.
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CREDITORS COMMITTEESREPRESENTATION OF CREDITOR ON COMMITTEE
SERVE AS COMMITTEE SECRETARY
SERVE IN AN ADVISORY CAPACITY TO COMMITTEEMEMBERS
ASSIST IN PREPARATION AND/OR REVIEW OFREORGANIZATION PLAN(S)
SERVE AS AN EXPERT WITNESS ON PREFERENCEISSUES
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General Assignment Liquidation3rd party acts as fiduciary
Sale of assets (auction)
Cash sales speeds distribution
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Chapter 7LiquidationSale Of Business
Preference Actions
Auctions
Liquidations
Ultimate discharge of all dischargeable debts