Valuepart
Team
Roles
Chief Restructuring Officer, Analyst
CONTACT US
Do you have any further questions? How can we help you? Get in touch with us.
Greg Baracato
Partner, Partners
With over 30 years of experience in business consulting, corporate management and restructuring, Greg Baracato has substantial expertise in rendering financial advisory and reorganization services on behalf of varied stakeholders in the restructuring and turnaround arena.
- Identified profit improvement strategies
The family-owned company provided high-quality replacement parts for off-road earthmoving equipment. The company's prior management team had mismanaged operations and perpetrated a fraud, which created significant liquidity issues and drove significant legal expenses. The company filed for Chapter 11 bankruptcy due to a revaluation of its inventory that resulted in an over-advance on the line of credit, along with pending litigation against its former manager for fraud and mismanagement. A CR3 professional as CRO leading the restructuring team implementing a cost reduction strategy and operating in Chapter 11 with only the use of cash collateral. CR3 professionals worked to solicit exit financing proposals, while crafting a Plan of Reorganization (“POR”), negotiating with the company’s secured lenders and creditors. Almost one year later, the Plan of Reorganization was confirmed. Existing ownership and a foreign strategic partner invested additional equity and a new asset-based lender structured a creatively capital structure to exit Chapter 11.
The Situation
- Family-owned provider of high-quality replacement parts for Caterpillar, Case, Deer, and other heavy equipment dealers and distributers
- Company’s prior management team mismanaged operations creating significant liquidity issues and driving high legal expenses
- Company filed for Chapter 11 bankruptcy due to a revaluation of inventory resulting in an over-advance on the line of credit, along with pending litigation expenses against its former manager for fraud and mismanagement
The Work
- CR3 professional served on CRO team and implemented a cost reduction strategy by closing two distribution centers and exiting a nonstrategic line of business
- Negotiated a meaningful recovery for unsecured creditors, including continued use of those creditors’ goods and services to meet ongoing supply-chain requirements, which if unmet would have severely limited its exit-financing alternatives
- Assisted company in functioning through series of contested short-term cash-collateral orders, battling for continued exclusivity
- Worked to solicit and negotiate exit financing proposals (debt and equity), while crafting a Plan of Reorganization (“POR”)
- Negotiated settlement agreements with company’s prior secured lenders and the Unsecured Creditors Committee
- CR3 team managed to overcome a number of obstacles, including trailing financial performance, lack of trade-credit during Chapter 11, personnel turnover and reduced available inventory levels
The Results
- Existing ownership and management continued to operate the company and implement profit improvement strategies
- Existing ownership and a foreign strategic partner invested additional equity, strengthening the balance sheet
- New international beneficial commercial supply arrangements were negotiated
- New ABL facility provided Chapter 11 exit financing and liquidity for growth
Explore Insights
View All
Article
Navigating a First-Of-Its-Kind Bankruptcy Case
On September 15, 2021, a grain elevator operator and processor of soybeans submitted an out-of-compliance borrowing base certificate to its secured lender. What followed was a novel bankruptcy case marked by massive complexity and a near-impossible positive outcome.
News
CR3 Partners Honored with M&A Advisor Award
CR3 Partners announced that the firm received the Award for "Restructuring of the Year ($10MM to $50MM)" by M&A Advisor in the "Chapter 11 Reorganization Award" category.
External Link
Learn How Fraud and Valuation Matters are Handled During Bankruptcy
Dallas-based Partner Sugi Hadiwijaya recently teamed up with Jermaine Watson at Bonds Ellis on a podcast highlighting basic aspects of how fraud-related matters are managed in a bankruptcy context. Listen to the full podcast brought to you by AICPA's Forensic and Valuation Services Section.
External Link
The JCPenney Bankruptcy: An inside view from a shareholder perspective
Reed Smith's Keith Aurzada joins William Snyder and Dawn Ragan, both of whom served as financial advisors to the equity committee in the JCPenney case. Our speakers explain the valuation of JCPenney assets and how restructuring support agreements shaped this case.
News
CR3 Partners Expands Los Angeles and Houston Offices
CR3 Partners is proud to announce the expansion of its rapidly growing Los Angeles office by adding two Senior Associates, Alex Pettee and Ashtynn Baltimore. Along with the additions to the Los Angeles office, CR3 Partners would also like to announce its new Director, Avery Alcorn out of the Houston office.
Article
How Much Capital Do Companies Need for Post-COVID Recovery, and Who Will Provide It?
CR3 Partners' clients and referral sources agree that additional capital will be needed to return operations to the "new normal" after COVID-19. But how much capital will they need, where will it be deployed, and who will provide it?
News
CR3 Partners Honored with Two M&A Advisor's Awards
Led by Dustin Lough, the engagement team for The NORDAM Group, a large international aerospace company, received the Restructuring of the Year ($250MM to $500MM) award as advisors to the lending group leading up to and including the Chapter 11 bankruptcy proceeding.
News
CR3 Partners Opens Los Angeles Office and Adds New Partner
CR3 Partners is delighted to announce that Tim Skillman has joined as a Partner of the firm and will be heading the new CR3 Partners Los Angeles office.
News
CR3 Partners Honored with Two Turnaround Atlas Awards at 2019 Global M&A Network Annual Gala
CR3 Partners is pleased to announce that the firm was awarded two Turnaround Atlas Awards on May 20, 2019 at the Global M&A Network Annual Gala.
News
CR3 Partners Expands Chicago Team
CR3 Partners is pleased to announce that Tim Shanahan has joined the CR3 Partners team and will be based in its Chicago office.
News
New Partner and Two More Executives Receive CTP Designation
The CR3 Partners Board of Managers is delighted to announce that James Katchadurian has been promoted to Partner with the firm.
External Link
CR3 Partners Advises NEOPS Alongside SSG Capital on Sale of Debt
SSG Capital Advisors, LLC (SSG) acted as the investment banker to New England Orthotic & Prosthetic Systems, LLC and its affiliates in the sale of all of its outstanding senior debt to AHM Healthcare Strategies (AHM), an affiliate of Eschen Prosthetic and Orthotic Laboratories, Inc. (Eschen).
News
CR3 Partners Honored with Turnaround Award at 12th Annual Gala by M&A Advisor at 2018 Distressed Investing Summit
CR3 Partners, a Dallas-based national turnaround and performance improvement firm, today announced that the firm was awarded a 2018 Turnaround Award for "Ch 11 Reorganization of the Year for ($25-100MM)" by M&A Advisor in the "Chapter 11 Reorganization Award" category.
News
Industry Veterans Combine to Launch National Turnaround and Performance Improvement Firm
The leadership of CR3 Partners, LLC, today revealed the details of their newly-formed national turnaround and performance improvement firm.