Turnaround Award for 2006 was awarded to Dan Garrison of Gallagher and
Kennedy, and Ted Burr of Sierra Consulting Group. Mssrs. Garrison and Burr assisted
Jake’s Granite Supplies in the restructuring of its company, by developing
and executing a restructuring plan that delivered a solution to Jake’s
debt, accounting, operational and contract dispute issues. Jakes’ Granite Supplies was a
family owned company in the custom granite crushing business. The business was operated through
a mobile plant for years. To better serve its existing client base and
expand its business operations, Jakes acquired five parcels of land
totaling 300 acres, and developed its own sand and gravel mining
Jakes contracted with two multi-national corporations to purchase its
production capacity, unusually wet conditions prevented Jakes from
Additionally, the development of the batch plants which had
contracted to operate, were significantly delayed.
company’s difficulties were the result of undercapitalization, poor
forecasting of exploding market prices and costs and contract disputes
with its two customers. Dan
Garrison, of Gallagher and Kennedy, was retained as Restructuring Counsel,
and Ted Burr, of Sierra Consulting,
was retained as Financial Advisor. Mssrs. Garrison and Burr developed
a turnaround strategy that included a Chapter 11 Bankruptcy filing to
stave off impending foreclosures.
Then, Mssrs. Garrison and Burr were able to negotiate significant
sales of inventory. These
sales generated cash to fund Jake’s pre-petition payroll, post-petition
payroll and its fuel and replacement parts needed to continue its
operations. The company was now operating “in the black”. With the cash flow crisis
diminished, the company was better positioned to negotiate a sale of all
of the company assets.
a pre-petition sale by the company was unsuccessful, Mssrs. Burr and
Garrison promoted the objective indicators of the value of the assets
(mineral appraisal, option prices for contracted production capacity and
the book value of the equipment), which suggested that there was
significant equity in the company.
took the lead in positioning the company assets for sale, and procuring
potential buyers for the business.
Numerous, multi-national companies were approached, and multiple
offers were procured, including LaFarge, Rinker and Cemex. Ultimately,
Cemex was the successful bidder, and the sale was approved by the
Bankruptcy court, with the successful Plan of Reorganization adopted in
the Plan of Reorganization, all creditors were paid in full, plus
interest, and Jake’s principals received a distribution of the remaining
proceeds in excess of $3,000,000, with the potential of an additional
$2,000,000 upon resolution of remaining disputed claims.
has since acquired real property and equipment, and is successfully
pursuing new ventures.
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