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Tuesday, October 1, 2019

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Software & Communications Firm Restructures and Completes Termination


  • Challenge: Lack of cash, the condition of records and liabilities that were not on the books.
  • Solution: Recording and restructuring debt, revamping operations to cut costs, sale of assets and, ultimately, business termination.
  • Result: Successful termination without infusion of shareholder cash.

Armanino was engaged to assist this software and communications services provider in restructuring its operations. In cooperation with company management, the Armanino team recorded all liabilities and debts, and revamped operations. The team established substantial debt workout plans with creditors and the operation was able to downsize its facilities costs through return of space to the property owner.

Eventually the company ran out of cash. It sold off its software assets to one firm and its communications services business to another for nominal values. Armanino was retained to manage the shell corporation through termination, including the company’s transition of assets to the two firms purchasing them.

To effect the termination plan, an Armanino professional became CEO of the company and two additional professionals were assigned CFO and controller duties. From the beginning, they faced major hurdles, including a scarcity of cash to effect the termination and vendor settlements, and continued issues with the condition of records and liabilities that were not on the books.

Despite these challenges, the company was successfully terminated without an additional infusion of shareholder cash.


Contact an Armanino Expert:

Michael Hogan - Managing Director, Consulting

Alex van Dillen - Director, Consulting


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