Chapter 11 Trustee for Montana based restaurant company with 16 franchise restaurants in three states.
Shoot the Moon, LLC, did not have the necessary operational controls in place for the restaurants to function successfully and began losing money as a result. When the company became financially distressed and all bank financing options were exhausted, the company president began illegally seeking out funds from private investors without registering as a securities broker in the state of Montana. In addition, several cash advance loans had been taken with 400% interest rates. Once the cash advance companies began collecting the debt through daily automatic withdraws and depleting the account funds, this forced the business into filing protection under Chapter 11 bankruptcy.
The overall strategy was to reorganize the business by operating the company, reducing costs, and increasing margins by: performing preference claim analyses to recover any payments made to creditors within the 90 days prior to bankruptcy; reviewing fraudulent transfers and performed merchant cash advance recoveries; conducting a thorough analysis of solvency; investigating Ponzi scheme with loans from private investors without a registered securities broker; recreating historical financial statements; assisting with investigation into criminal charges filed against the business owner; retaining employees to continue business operations; demonstrating to franchisee that delayed payments would keep restaurants open.
Resolute was able to successfully administer the sale of the business enterprise via §363 Sale of Strategic Assets, along with liquor licenses, for nearly $12.5MM.