Mr. Milligan is currently the practice leader of the Insolvency Advisory, Fiduciary Services, Strategic Divestiture and Real Estate Services practice areas for the Harney Management Partners (HMP) offices in Chicago, Austin and Madison, in addition to his work with all other areas of the firm’s corporate advisory practice.
For more than 20 years, and with engagements involving onsite advisory to clients in more than 20 states and several foreign countries, Greg has maintained a practice exclusively surrounding financial crisis and other troubled situations. Greg joined HMP in 1998 and opened the second HMP office in Austin in 2001. Since that time, he has both led and collaborated on engagements with highly successful outcomes, including multiple peer-review awards, such as from the Turnaround Management Association and the M&A Advisor.
The common thread which runs throughout Greg’s career is his ability to enter a new and troubled situation to quickly develop an understanding of the situation, identify the key resources needed to achieve the best possible outcome, develop multiple strategic alternatives toward that outcome, and manage the personnel and other resources required to execute the selected plan of attack – all while developing and maintaining a good working relationship with the necessary stakeholder constituencies.
Greg has served both inside and outside of court proceedings in a number of different capacities, including:
- Chief Restructuring Officer
- Chapter 11 Operating Trustee
- Chapter 11 Liquidating Trustee
- Chapter 11 Post-Confirmation Trustee
- State Court Receiver
- Restructuring Advisor
- Court-Appointed Director
- Independent Board Member
Greg also hold a Texas Real Estate License and is a Member of eligible Special Deputy Receivers approved by the Texas Department of Insurance with respect to the rehabilitation and/or liquidation of Texas insurance entities.
Representative engagements include:
- Chief Restructuring Officer of Oxane Materials, Inc., a Chapter 11 debtor in Houston, Texas that raised approximately $150MM in equity, and at the time of filing owed more than $40MM in senior and subordinated secured debt. The company designed and produced a nanotechnology ceramic proppant used in oil and gas “fracking,” but the operations never achieved sufficient volume and economies of scale to reach a profitable cost structure prior to the macroeconomic downturn in that industry. As a result, operations were ceased, and an orderly wind down was conducted through a Chapter 11 proceeding wherein the intellectual property was sold to Halliburton Energy Services and the Houston research labs and Arkansas manufacturing facility were sold to Chemject International.
- Out-of-Court Restructuring Advisor to LongVANS, Inc. and its 14 related LLCs based in Green Bay, Wisconsin and operating within a six-state regional territory. The company and related entities had not been making debt service payments to multiple secured lenders for a number of months at the time of our engagement. After gaining the cooperation of 10 secured lenders operating without any inter-creditor agreements, many of which maintained pending foreclosure actions, and an active trade creditor group with 8 judgments and 14 pending lawsuits, an going-concern sale process was completed that paid all secured creditors at closing, paid all trade creditors in full, and returned a dividend to the investor class.This engagement was recognized by both the Turnaround Management Association (2015) as Small Company Transaction of the Year and the M&A Advisor (2016) as the Divestiture of the Year.
- Chapter 11 Operating Trustee for Harriett Heep-Schaffer in Austin, Texas in a high-profile and highly contentious bankruptcy case involving real property valued in excess of $30 million. After litigation and negotiations to clear several clouds on the title, and defending a toll road condemnation proceeding, a plan was developed to obtain exit financing which provided sufficient funding to pay all creditors 100%, plus interest. This left ownership of the property with the Debtor, who ultimately realized an eight-figure net return.
- Chief Restructuring Officer of, and independent Board Member to, First Choice Pet Care, Inc. operating as “The Corner Vet” with nine (9) limited service veterinarian clinics in the Dallas and Houston markets providing pet owners a high-quality, reasonably-priced alternative to traditional high-cost veterinary care. This matter involved an out-of-court recapitalization of the company through a second round of investor financing.
- Restructuring Advisor and Post-Confirmation Trustee to Wick Building Systems, Inc., a Chapter 11 debtor in Madison, Wisconsin. This matter involved the closure of two unprofitable divisions and the operation/sale of a third, profitable division, after an extensive §363 sale process. The “crash landing” Chapter 11 filing was precipitated by the senior secured lender sweeping the company’s seven-figure account balance due to concerns as to whether the company had the ability to repay the principal balance owed on the loan facility; however, after a successful sale process, an 80% dividend was returned to the unsecured creditors of all three divisions from the sale proceeds of only one division. The ultimate buyer was the namesake founder of the business, and minority owner on the date of filing, who continues the family business today.The efforts in this case were recognized by our industry peers through receipt of the Community Impact Deal of the Year by the M&A Advisor.
- Chapter 11 Post-Confirmation Trustee for VPR Operating, LLC and other consolidated E&P (exploration and production) debtor entities with oil and gas interests in Oklahoma and New Mexico. All such assets of the Debtors were sold pre-confirmation and the Trustee stepped into pending subordination/re-characterization litigation filed by the Committee against certain investors and alleged pre-petition lenders. Post-confirmation, the Trustee also filed approximately forty (40) Chapter 5 causes of action, as well as additional D&O litigation.
- Chapter 11 Post-Confirmation Trustee for Warranty Gold, Ltd. representing the interests of 64,000 policy holders of a failed automotive extended warranty company. This engagement involved the direction of complex litigation against multiple third-party defendants both in the United States and the Cayman Islands, as well as the Chapter 11 claims adjudication process issuing payment to all 64,000 customers holding claims exceeding $50 million. As Trustee, Greg also served on the Creditors Committee in the Cayman Island insolvency proceeding of National Warranty Insurance Risk Retention Group, which was the administrator and insurer of Warranty Gold’s extended vehicle service contracts.
- State Court Receiver for House Savings Investment and AA House Savings Financial, two mortgage processing companies in Houston, Texas, or Money Service Businesses (as defined by Texas Statute), with approximately 18,000 customers, which were sued by the Texas Attorney General and the Texas Department of Banking for failing to account for millions of dollars of consumer trust funds and/or operating a money service business without a license. After running the businesses for a period of time, it was determined that rehabilitation was not possible if the companies were to operate within the requirements of all relevant regulations. As such, an orderly wind down was conducted of both companies in a manner that insured all active customers mortgage payments were timely remitted during the transition. A forensic investigation was conducted to identity defrauded consumers, the sources and uses of embezzled consumer trust funds, the location and liquidation of recoverable assets, and the development of an equitable claims and distribution process. Ultimately, funds were traced through 32 different insider bank accounts to the purchase of eight (8) real properties with misappropriated customer funds, which were recovered from the insiders and sold by the Receiver for the benefit of defrauded customers.
- State Court Receiver for Warr Investment Group, Warr International Group and sixteen (16) other persons and entities sued by the Texas Attorney General and the Texas State Securities Board for selling unregistered securities, by unlicensed dealers and though various means of fraud. An orderly wind down was conducted for the assets of each entity and a forensic investigation was conducted to identity affected investors, the source and use of investor funds, the location and liquidation of all recoverable assets, and the development of an equitable claims and distribution process. In the end, investors received a dividend of 44.4% on their investment claims, which is well above the national average for Ponzi scheme recoveries. The Receiver provided his investigative findings to the State Board of Securities and the companies’ principal, James E. Warr, was indicted in July of 2015.
- State Court Receiver for Incline Global Technology Services, Ltd., a high tech service company located in Round Rock, Texas adjacent to its major customer, Dell Computer. IGTS was the subsidiary of a UK entity “in administration,” which is an insolvency process under the management of a court-appointed administrator. The assignment involved the operation of the business for a period of time while the orderly wind down and sale was arranged and closed with Jabil Circuit, a Fortune 200 company, which allowed the retention of all 140 local jobs. Finally, the Receiver was able to negotiate a consensual reduction in the unsecured claim of the parent company in the UK against IGTS from $41 million to $0, which allowed for a 52% dividend to unsecured creditors.
- Pre-Petition Restructuring Advisor and Chapter 11 Post-Confirmation Trustee to Galveston Bay Biodiesel, LP, a Chapter 11 debtor in Galveston, Texas. This matter involved the conduct of on orderly wind down and §363 sale process of a biodiesel refinery after assisting in the formulation of the Disclosure Statement and Plan. The case was precipitated by catastrophic damage caused to the refinery by Hurricane Ike, so the Trustee also litigated against the debtor’s insurance carriers to recover on claims for the benefit of creditors.
- Advisor to ten-member bank syndicate related to its $350 million credit facility to Neuman Distributors, Inc., which was the 6th largest drug and pharmaceutical products wholesaler in the United States at that time, with annual sales of $2.5 billion in the year the engagement began. With primary operations in New York and New Jersey, Greg lead the onsite efforts at the various distribution centers to supervise the orderly wind down and liquidation of approximately $250 million of pharmaceutical assets located across four (4) states. These efforts also lead to the discovery of undisclosed inventory fraud approaching $10 million and a post-liquidation Chapter 7 proceeding.
- Chapter 11 Restructuring Advisor to InGEAR Corporation, a Chicago-based $70 million contract manufacturer of luggage, sports bags and backpacks for private label brands at Target, Kohl’s, J. C. Penney, Wal-Mart and K-Mart. The company also held licenses to manufacture the same product lines for Champion, Spalding, Coleman, Hummer, Rubbermaid and Laura Ashley. This engagement involved the orderly wind down of activities in both the U.S. and Asia, a §363 asset sale in Chapter 11, as well as the identification of financial and collateral reporting irregularities by the debtor’s management.
- Sole Director of a Cayman entity, Esperada Holdings, appointed by a Chapter 7 Trustee, to investigate the conduct of the entity’s business and ownership of assets in Grand Cayman and elsewhere. These efforts facilitated the orderly wind down of the entity, to include the recovery and liquidation of an apartment complex, cars, boats and the pursuit of multiple litigation claims.
In addition to his membership in the Turnaround Management Association, and serving as a founding member and board member since the inception of the TMA Central Texas Chapter, Greg is also a member of the National Association of Bankruptcy Trustees, American Bankruptcy Institute, Association of Certified Fraud Examiners, and the Commercial Finance Association. He has also been a speaker or guest lecturer on a range of insolvency matters at various colleges, universities and State Bar CLE events, as well as to the National Association of Attorneys General on Receivership matters.
He has served on the Non-Lawyer Committee to the State Bar of Texas Bankruptcy Law Section to represent the interests of non-attorneys, such as financial advisors, and serve as a liaison between the State Bar and TMA members.
Greg received a B. A. in Economics from The University of Texas at Austin, holds a Texas Real Estate License, and has received the designation of Certified Turnaround Professional from the Turnaround Management Association, which is designed to demonstrate commitment, competency and expertise in the legal, financial and management aspects of the restructuring practice.
Greg is also active in his church, where he was ordained as a Deacon in 2015, and has served in many other capacities, including as Chair of the Budget and Finance Committee and as Trustee of the church’s Foundation. He also serves as a Court-Appointed Special Advocate (CASA) and Guardian Ad Litem for abused and neglected children.