Plaza Recovery, Inc.

Summary

Financial Advisor

New York, NY

Plaza was a consumer debt collections agency headquartered in mid-town Manhattan.

Company had material flaws in the business model that lead to the restructuring. At the time of restructuring Plaza had $37M of revenue and $17M of debt. It was a labor-intensive industry with competitors based on low labor cost locations creating a material competitive disadvantage.

Engagement Highlights

Performed liquidity analysis, business plan assessment and vetting of the budget; assessed near to mid-term outlook based upon market dynamics and sensitized outlook based upon key revenue, margin and assumed receipt timing.
Market shift as high margin business shifted medical industry collections; Plaza core business was more traditional consumer debt.
CMA performed the following analyses to determine which course of action would maximize the lenders’ recovery:
Business plan sensitized to reflect deteriorating margins and decline in consumer collections.
Analysis of 13-week cash plan revealed inability to accurately forecast collections and availability.
Tested sale strategy to sell legacy division and re-build around medical product line; cost and availability did not support strategy.
CMA participated and supported Bank in analyzing and negotiating potential sale opportunities with the Debtor’s I.B..
Company sold and recovery for the Bank maximized.

Plaza Recovery, Inc.

Summary

Financial Advisor

Engagement Highlights

Sign Up for Our Newsletter