MERCURY FINANCE COMPANY
DSI'S Role
Replacement Management
Services Provided
- Business Plan Analysis
- Crisis & Interim Management
- D&O Liability
- Financial Restructuring
- Forensic Accounting
MERCURY FINANCE COMPANY
Case Highlights
- Stabilized core business after discovery of fraud
- Developed and implemented business plan
Case Narrative
Mercury Finance Company was once the nation’s largest subprime specialty consumer finance company, providing products through a network of subsidiaries and approximately 200 branch offices. DSI personnel were appointed to senior management positions, including CEO and CFO, following an announcement of massive financial irregularities and a $2 billion loss in the company’s market capitalization. DSI implemented a business plan that stabilized the core business, discontinued or sold unprofitable operations and disposed of non-critical assets. Financial statements were restated by DSI and filed with the SEC. During the process of this restructuring, more than $425 million of debt was paid down on obligations of more than $1 billion, and at the time its plan of reorganization was confirmed, Mercury held in excess of $75 million in cash and short-term investments. The plan provided for the conversion of a significant portion of the debt to equity, leaving the former equity holders with a significant, but diluted, stake.