IGPS COMPANY - CASE STUDY
Industry: Diversified Support Services
Transaction Type: Chapter 11 §363 Sale
iGPS Company LLC is the first and only plastic pallet pooling rental and leasing company in the United States, offering shippers and receivers advanced and cost-efficient pallet-based shipping solutions.
In light of significant capital obligations amid a deteriorating liquidity profile, iGPS Company LLC filed for chapter 11 bankruptcy in the District of Delaware in June 2013.
In connection with the chapter 11 filing, Emerald was retained as the exclusive financial advisor to the Official Committee of Unsecured Creditors of iGPS, focusing on the following action items:
- Assessing the Company’s liquidity situation.
- Evaluating the proposed sales process.
- Conducting thorough claims and security analyses.
As a result of Emerald’s involvement, the following outcomes were successfully achieved, including:
- $2.5 million were carved out from the sales proceeds for General Unsecured Creditors, and the buyer was required to pay all senior claims.
- General Unsecured Creditors recovered approximately 15 cents on the dollar (up from a de minimis recovery previously proposed by the Debtor and purchaser).