Case Study:
Witchita-based Protein Broker
Assisted protein broker experiencing liquidity challenges due to a fraudulent receivable
Harney was engaged as Financial Advisor to a bi-national, family-owned Wichita-based protein broker experiencing liquidity challenges due to a large fraudulent receivable with a Latin American client. The fraudulent receivable caused a significant decline in the Client’s borrowing base. Harney took actions and helped Client execute a forbearance agreement and maintain liquidity.
The Solution
Developed a cash flow forecast to analyze the debt-free cash position, excluding the fraudulent receivable
Negotiated forbearance agreement with the bank while the company investigated the fraudulent receivable
Filed insurance claims against the receivable, former directors and officers who may have directly known about the fraud for a period of time before it was discovered, and the accounting firm that audited the Company’s financials
Worked directly with the senior lender to undergo a divisive merger that separated the fraudulent assets tied to litigation, which was in the interest of both the Company and the Bank
Advised the client through the merger of an affiliate technology company to capitalize on the synergies of a consolidated platform
The Results
Client was able to continue to maintain a degree of normalcy amid challenges and ongoing litigation
As a result of these achievements, the Client continues to operate a cash-positive position under the forbearance agreement while the fraudulent receivable is brought before the court
Services & Roles
Forensics and Litigation
Financial Advisory
*Some engagements may have been performed by team prior to joining Harney Partners.
