In Wisconsin, the ABC process is governed by statute and is court supervised. Similar to an Illinois ABC, the Company can select the Receiver. However, unlike an Illinois ABC, the Receiver, usually an experienced Wisconsin attorney, has the authority to pursue avoidance actions and recover preferential transfers. In addition, the Wisconsin 128 statute provides for an “automatic stay”, similar to a bankruptcy. One of the many benefits of a Wisconsin 128 receivership is that the assets of a business can be sold in a fairly short time frame and the buyer of the assets receives a court order approving the sale free and clear of all liens and encumbrances.

We have typically served as the financial advisor to the Chapter 128 Receiver in many matters. In this capacity, we have been entrusted to provide cash management and operational management services to the business. We also assist the Receiver by providing investment banking-related services to identify prospective buyers for the Company (in both a going-concern or shut-down scenario), coordinate due diligence efforts and assist in the negotiation process.

An individual or corporation may seek relief in the form of Chapter 7 bankruptcy for a variety of reasons, such as the inability to service debt or repay its creditors. As opposed to Chapter 11 bankruptcy, which governs the reorganization of an entity in bankruptcy, Chapter 7 governs the process of liquidation. A trustee is immediately appointed to monitor and examine all financial affairs of the business in order to maximize the value of those assets for redistribution to the creditors. In small cases, a trustee can manage this process and bring closure in a short amount of time. Sometimes, in larger filings, the trustee may choose to involve a consultant or financial advisor to aid in the process and provide visibility to all the financial information a company may possess.

If you are contemplating filing for Chapter 7 bankruptcy protection, we suggest you immediately discuss your options with an insolvency attorney.

From our point of view, many companies in financial distress resort to bankruptcy when deferral or avoidance may be far more productive for all parties involved. Filing for protection under Chapter 11 is always an option, but one that we believe should be considered carefully and exercised judiciously. In many instances, a bankruptcy can be avoided by taking the appropriate restructuring measures.

Silverman Consulting is experienced in guiding restructuring efforts in or out of a court-supervised environment. When reorganization is appropriate, we view bankruptcy as a means to an end, but not as an end in itself. A successful reorganization is one in which the restructuring efforts do not take a back seat to legal proceedings. The skillful implementation of a restructuring plan which reverses operating losses and creates credible projections for lenders and creditors can provide the entire basis of a Chapter 11 alternative.

We have helped guide numerous clients through the Chapter 11 process. We understand that speed, effective communication and attention to the concerns of all interested parties, as well as the technical requirements of the bankruptcy process, are critical components of a successful reorganization. Our experience enables us to focus on managing the bankruptcy process, from the initial planning stage all the way through plan confirmation, while at the same time keeping our clients focused on the restructuring plan and managing their business.

In addition to reorganizations, we have assisted many clients in selling their companies through the Chapter 11 bankruptcy process. In these instances, we have worked alongside the company’s outside advisors as well as provided investment banking services to effectuate a successful transaction.

When all efforts to save a foundering business have failed, a business owner’s next fiduciary priority is to maximize value for creditors. When confronted by the fact that a business has reached the point of no return, there are several options to maximize value, including a forced or orderly liquidation of the business. While both options can be conducted with or without court supervision, the difference between the two options is that an orderly liquidation almost always results in a better outcome for creditors and, quite possibly, for business owners.

In an orderly liquidation, the primary resource utilized (compared to a forced liquidation) is time. Given enough time to strategically put its affairs in order, a business can expect to maximize value to stakeholders by allowing the business cycle to be completed. By having time to fulfill remaining customer orders, a company may be able to effectively use current inventory on-hand, collect receivables without massive discounting and dispose of intangible assets and plant, property and equipment in a non-fire sale manner.

Silverman Consulting has been involved in numerous orderly liquidations since our inception. For most companies in liquidation, receivables and inventory comprise a large portion of their asset base and also present the greatest volatility if not handled properly. We take pride in maximizing the return on asset values through creative means, including a sale of the business enterprise to a strategic buyer, working with lenders and creditors on a plan of liquidation which allows full utilization of inventory on-hand (even if it requires additional inventory to be purchased) and working with customers to not leave them “high and dry” without a supplier. The latter allows for the full payment of all receivables due to the liquidating company.

Principals of Silverman Consulting have served as the court-appointed receiver in a number of matters. In these state court proceedings, which are usually initiated by a company’s secured lender, our duty is to oversee all aspects of the operation of the business and to maintain, preserve and sometimes liquidate the lender’s collateral. Periodic reports are made to the court outlining the results of operations, issues encountered and any other matters deemed worthy for the court’s attention.

As the Receiver, we work closely with all of the parties-in-interest to ensure that the business and/or its assets are well managed while the parties seek to resolve their litigation matters.