Fiduciary Services and Special Situations
- Federal and State Court Receiver
- Assignee for the Benefit of Creditors
- Interim Management
- Proficient Liquidations
Efficient. Effective. Experts. Newpoint Advisors’ professionals understand the unique challenges facing a secured lender or business owners, partners, family owned companies and other stakeholders, when faced with difficult, compromising and special situations involving their business, collateral and/or assets.
The professionals of Newpoint Advisors serve as federal and state court-appointed receiver on several platforms, in numerous industries and sectors, ranging from business operations and/or real estate loan defaults/foreclosures. Our approach is structured and straightforward as we communicate with the appointing party as to the need for professional oversight using our Prospect Profile tools. Using tested analysis and proprietary instruments, we can anticipate the resources that are vital to the business and/or actual estate activities, management, and safety until an appointment is made. We deploy resources immediately following our appointment to secure, preserve, and/or maximize the collateral and assets while providing proactive and appropriate levels of communication and process visibility to all stakeholders.
Assignment for the Benefit of Creditors (ABC)
Newpoint Advisors is frequently called upon to act as an assignee in an ABC. An ABC is a cost-effective platform that allows for a struggling company to maximize its recovery to its creditors and prevent filing bankruptcy. Although similar to a bankruptcy proceeding, an ABC does not require a court proceeding (in certain jurisdictions) nor the substantial fees and time delays. Our objective is to maximize the recovery for the creditors, while attempting to preserve jobs if the opportunity presents itself to sell as a going concern. Our team will prepare a marketing teaser detailing the assets/collateral of the business and immediately go to market looking for the highest and best offers. Most times we find several buyers thus creating a bidding situation and therefore a higher recovery for the creditors. Throughout the ABC we are working with and communicating to key stakeholders and creditors (i.e. – secured lender(s), taxing authorities, unions, employee benefit and retirement programs, unsecured creditors, etc.) assuring a seamless and smooth transition.
Interim Management / Chief Restructuring Officer
Are you or your management team “wearing too many hats?” Is cash management becoming a problem? Are you falling behind on reporting requirements to your key stakeholders or failing to meet loan obligations and/or covenants? It is probably time to retain Newpoint Advisors as interim management (i.e. Chief Restructuring Officer). Our team of industry leaders and experts is the key to keeping your doors open and business operating (both in time and money). As CRO, by using Newpoint’s proprietary tools Cash Flow Launcher™ and TAME™ (Turnaround Action Matrix Evaluation), we will review and assess the business’s cash position and operations. These instruments will identify your business ‘ deficiencies and generate a recovery roadmap. As CRO, we will communicate regularly with your main stakeholders and other third parties to guarantee survival and eventually, its growth and success.
The professionals of Newpoint appreciate and understand the challenges and intricacies of bankruptcy matters. NAC’s professionals have established a reputation for not only advising debtors and creditors in bankruptcy efficiently and cost-effectively but also in providing exceptional service to creditors’ committees and court-appointed bankruptcy trustees. Newpoint’s network and partnership with trusted bankruptcy counsel and specialty tax/accounting servicers better positions their clients to achieve the ultimate objective – maximizing recovery while retaining opportunities/jobs.
Newpoint’s approach is designed to accelerate the process and allow for an orderly transition into, and most importantly, out of bankruptcy. Newpoint understands the importance of formulating a strategy to achieve an optimal outcome. With over 35 years of combined experience, NAC’s professionals are prepared to step into any bankruptcy position and situation.
Effective February 19, 2020, the Bankruptcy Code provides for a more compact, simpler version of Chapter 11 Reorganizations for Small Business Corporate and Individual Debtors. It is known as Subchapter V. What this means for Small Businesses with debts below $ 2.75 Million is that they are allowed to reorganize their obligations under Chapter 11 without the need for obtaining the consent of a class of “impaired” creditors as required under basic Chapter 11. The United States trustee shall appoint one disinterested person to serve as trustee in the case or the United States trustee may serve as trustee in the case, as necessary -while the debtor remains in possession of assets and operates the business as a debtor in possession.
Newpoint is proud to have two senior team members designated as Subchapter V trustees. Both Matthew Brash (Northern District of IL) and Tim Stone (Middle district of TN) have been appointed and are currently serving on cases. Their individual efforts are a reflection of Newpoint’s dedication to small distressed businesses and the many ways we try to solve issues in this space.
The Subchapter V law provides for several unique reliefs from established Chapter 11 procedures. The program is highly structured. As the appointed Trustee for a Subchapter V, he or she is charged with:
- Insuring compliance with the statute.
- Advising the court as to the viability of the reorganization and assisting in the reorganization process.
- Providing an accounting for all property received by the Debtor.
- Examining and rejecting, if required, any claims against the Debtor.
- Conducting a review of the Debtor’s financial condition and business operations.
- Reporting any fraud or misconduct to the Court.
- Appearing at status conferences and materially significant hearings.
- Preparing a final report of the case for the Bankruptcy Court.
- Assisting as necessary in the facilitation of the Plan.
- Distributing the Debtor’s property in accordance with the Plan.
- Confirming the Debtor’s adherence to the court-approved Plan during the payment period.
- Valuing the property subject to liens.
- Overseeing the sale of any property of the Debtor sold prior to the confirmation of the Plan or during the payment period provided for under the Plan.
We believe that Newpoint’s financial advisory skills combined with its proprietary tools like TAME™ allow Newpoint Trustees to provide a value added service to the debtor and its stakeholders as well as tools that debtors counsel can use as well as other Trustees to manage their cases outside of Newpoint’s Subchapter V Trustees.
On a historical note, Tim Stone, in his role as a Subchapter V Trustee has the distinction of being appointed the very first Trustee appointment. We believe it is remarkable as it demonstrates Newpoint’s dedication to this space and its efforts follow this important law through its creation and preparing ourselves be stewards of the law and champions of small distressed company solutions.
Newpoint is not a liquidator. We are a proficient liquidator. Our standing operating procedure is to find value where no one else does. Instead of kicking down the doors and holding an auction, Newpoint utilizes its extensive database of resources to ensure your business (or your borrower) receives all options and opportunities to maximize the value of the assets/collateral. This approach creates a variety of options where cash can be guaranteed or delivered over various platforms and situations via an auction, sale or other.
To Learn More About Fiduciary Services from Newpoint Advisors
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