Situation
Plymarts, Inc. was a 350 million dollar forest product business located in Atlanta, Georgia. The company had three subsidiaries including lumber yards, a custom stair business, and a specialty design and installation business. Swept into the perfect financial storm of 2008, Plymarts had 50% of its builder receivables deemed uncollectable, which resulted in their default on both asset-based and real estate loans.
Action
GGG was appointed as Director of Reorganization and subsequently became the Federal Receiver in oder to oversee the sale of the company’s assets. Successfully selling certain business segments, GGG closed 11 lumber yards, consolidated and sold inventory, and collected receivables
Results
Due to the swift actions of GGG, the senior lender’s twenty million dollar asset based line of credit was paid in full and the real estate loan was substantially reduced.