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Case Study – QuantumShift Communications, Inc. (software-communications)

Case Study – QuantumShift Communications, Inc. (software-communications)

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

Eventually the company ran out of cash and 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 the assets of the company.

To effect the termination plan, an Armanino professional became CEO of QS and two additional professionals were assigned CFO and Controller duties. From the beginning, major issues arose, including a scarcity of cash to effect the termination and vendor settlements, and continued issues with the condition of records and liabilities not on the books. Despite that, QS was successfully terminated without additional infusion of shareholder cash.