Our Success

A financial holding company based in Texas was facing a large number of foreclosed energy and real estate assets, with minimal in-house management resources to manage or operate these assets. Corporate Strategies researched various investment companies and found many had a preference for certain types of asset classes that fit their management profile. We arranged several multi-million dollar exchanges as well as outright sales of troubled assets among financial and private equity investor groups. Each party received assets they were more comfortable managing, and the parties improved their ability to add long-term core asset value to their portfolios.

Corporate Strategies’ client was a major borrower at a regional Houston bank. He was in default on a significant number of loans totaling millions of dollars owed to the bank and bankruptcy was under active consideration.

The cross-default provisions in his loans jeopardized major property holdings owned by minority shareholders as well as the borrower. In order to prevent foreclosure on the borrower’s assets, Corporate Strategies negotiated forbearance agreements on all the borrower’s bank loans and arranged a non-bank funding of $7.5 million to pay off the bank’s loans secured by the properties. In February 2020, 2 1/2 years following the original transaction, Corporate Strategies arranged a follow-on $8 million loan for the minority shareholders to buy out the majority shareholder. The former minority owners now control the majority ownership of a re-invigorated company.

Our client had a multi-million dollar investment in a Canadian vitamin and protein manufacturer. Unknown to the investor, the company was placed into an involuntary receivership in Canada, jeopardizing our client’s entire investment. Corporate Strategies successfully negotiated the Canadian Court’s receivership claims for 50 cents on the dollar, increased the company’s revenues by 60 percent over 18 months, preserved the client’s investment, and enhanced the company’s future value.

A Vermont-based, 40-year-old US Department of Defense contractor- manufacturer of electronics was burdened with excessive costs, and continuing negative cash flow. Over a 24-month period, Corporate Strategies re-engineered manufacturing processes, lowered costs and accelerated deliveries. The company was subsequently acquired by one of its competitors in a transaction arranged by Corporate Strategies.

A Corporate Strategies technology client became publicly traded and completed a substantial convertible bond financing with a Connecticut based hedge fund. The fund agreed to a one-year stock lockup, prohibiting stock sales and shorting of any kind. Suddenly, stock volumes rose and share price plummeted from massive sales occurring out of a Canadian brokerage firm, damaging shareholder values and jeopardizing other prospective investments in the company.

Our research indicated the hedge fund was shorting the stock from an account in Canada. After we obtained written proof of the short sales from the Canadian brokerage firm, the hedge fund was forced to “buy-in” common stock from the public market in an amount equal to those shares shorted in violation of their contractual lock up provisions.