Aztec/Shaffer

Summary

Chief Restructuring Officer

Houston, TX

Aztec/Shaffer is comprised of two segments: Aztec is the largest party supply provider in Houston and Shaffer Sports is the leading event rental company in the sporting industry whose largest client is the PGA. It also provides the temporary tents and luxury seating to the Circuit of the Americas and the Breeders Cup.

Aztec/Shaffer was severely impacted by the COVID-19 pandemic as fan-attended golf tournaments stopped and the number of large events (weddings, graduations, Houston rodeo, etc.) dropped significantly. The Company filed bankruptcy several weeks before Carl Marks was asked to step in as CRO. Many of the first day motions had been approved which limited available options for the remainder of the case.

Key Challenges

COVID-19 Operational Challenges

Customer Concentration (PGA Tour)

Thinly Capitalized

“Freefall” Bankruptcy Filing & DIP Financing

Largest Customer (PGA Tour) Also a DIP Lender

Engagement Highlights

Served as CRO while guiding the company through a Chapter 11 bankruptcy post-petition sale process resulting in a successful §363 sale of substantially all the Company’s assets.
Managed all bankruptcy and schedule filing requirements
Maintained communication with all stakeholders including weekly reporting requirements of the DIP loan agreement.
Engaged and managed the Investment bank which undertook the sale of substantially all the company’s assets
Managed the recovery from a denial-of-service cyber attack which resulted in the loss of several months worth of accounting information.
Monitored liquidity and operations through the §363 effective date.
Developed a plan to apply for ERC credits which provided much needed liquidity to the estate.
Oversaw the development of a confirmation plan and successfully conveyed the remaining assets of the estate to a liquidation trust for the benefit of unsecured creditors.

Aztec/Shaffer

Summary

Chief Restructuring Officer

Key Challenges

Engagement Highlights

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