DSI'S Role

Financial Advisor to Debtor

Services Provided

  • Business Plan Analysis
  • Crisis & Interim Management
  • Sale of Assets
  • Wind Down Management


Case Highlights

  • Developed and implemented plan to relieve company of its liquidity crisis
  • Developed consensus for creditors to work with the company
  • Coordinated operations and sale efforts in bankruptcy, resulting in sale of company for more than $43 million

Case Narrative

TIE Communications, Inc., was one of the largest independent distributors of business telephone systems in the country, providing after-sale maintenance, support, warranty and repair service for the systems it sold.

At the time of DSI’s retention, the company’s liquidity problems were so severe they jeopardized payment of immediate payroll and current inventory purchase.  DSI took immediate steps to develop and implement short-term liquidity plan to conserve and better redeploy the funds available to support the business. Concurrently, DSI orchestrated a consensus among lenders and creditors for credit support, and the future direction of the company.  DSI guided TIE through a Chapter 11 bankruptcy, in which DSI managed the company’s daily business affairs and sale effort.  DSI was instrumental in crafting the exit strategy under which the business was sold for more than $43 million, including cash and assumption of liabilities.  This outcome ensured payment in full to the secured lenders, with a substantial dividend to unsecured creditors.