Winter Harbor LLC
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Innovative Building Systems, LLC

 

Innovative Building Systems designed and manufactured custom modular homes with several subsidiaries under the brand Innovative Design and Building Services (IDBS). They had operating facilities throughout the United States. They constructed single family homes, multi-family homes and commercial buildings. They were located in Mechanicsburg, PA with approximately $150 million in annual sales.

Situation

IDBS required restructuring assistance with determining the best strategic option for continuing operations. Should the Company voluntary file bankruptcy protection, Winter Harbor would be retained as liquidating trustee.

Scope of Work

As directed by the Company’s board, Winter Harbor acted as chief restructuring officer, evaluating strategic alternatives related the Company’s restructuring.

Phase 1:

  • Evaluated the Company’s existing financial and operational condition.

  • Determined and communicated strategic restructuring alternatives to the Company’s board.

  • In conjunction with the Company’s management, managed capital and prepare ongoing forecasts of cash flows, claims pools, and estimated creditor recoveries.

  • Identified business improvement opportunities and cost rationalization opportunities.

Phase 2:

  • Guided Company through voluntary Chapter 7 bankruptcy filing process.

  • Compiled and formatted data and analyses required to meet financial reporting mandates.

  • Managed the reconciliation of claims against the Company.

  • Prepared the Company for court hearings and provided expert testimony, as required.

Phase 3:

  • Oversaw the liquidation and wind down process.

  • Managed the production backlog of floors within each location plant.

  • Led Company negotiations with its creditor constituencies.

  • Assisted property owner with sale of manufacturing facilities to strategic buyer.

Engagement Outcome

Winter Harbor professionals managed the cease of operations and guided the Company through a wind-down process and Chapter 7 bankruptcy filing. We coordinated end of production with customers and suppliers, and worked to preserve critical staff personnel during filing, avoiding large layoffs. We partnered with management to fulfill client orders through available inventory at headquarter facilities, while determining production issues and implementing operational solutions targeted at completing backlogged orders.