Bankrupt Sub-Prime Lender (BSPL)
The sub-prime lending business can be quite lucrative if built and operated correctly. A substantial number of companies were built during the growth period of this industry.
BSPL was a sub-prime lender built by an individual that did not have the company’s or investor’s best interest at heart. After pillaging the company the owner left the country. He had financed the organization with bonds that had been issued to individuals.
BSPL was forced to file for bankruptcy in an effort to reorganize. The majority of the management left and the company was being run by middle level management. The company needed to determine what assets remained, what they were worth, and develop a business model to restructure the company.
Why Goff Associates, Inc. (GAI)?
GAI had substantial experience in financial services particularly the subprime lending industry. GAI is also skilled at forensic accounting and auditing.
GAI was brought in as a consultant by the management team. GAI immediately began identifying the assets of the company through a review of the company’s books and records, particularly for the disposition of liquidated assets for possible fraudulent transference. Once the remaining assets were determined, GAI set about having them verified. It was determined that the assets were scattered across the state. In coordination with the companies CPA firm, GAI quickly had a physical audit performed on all hard assets and a phone verification done on all loans to verify that they were not fraudulent or compromised.
Once the assets were secured, GAI implemented policies and procedures that reduced the risk of them being lost. GAI worked with the management team to develop alternatives for the company going forward. GAI also worked with the creditors committee, its counsel and consultants on this plan. Ultimately it was decided to that it was in the best interest of the investors to liquidate the remaining assets and distribute them to the investors and creditors. With the policies and procedures put in place by GAI, the assets were liquidated and the recovery maximized.