DSI'S Role

Replacement Management

Services Provided

  • Business Plan Analysis
  • Crisis & Interim Management
  • D&O Liability
  • Financial Restructuring
  • Forensic Accounting


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.