Accurate Auto Carriers

Situation

Accurate Auto Carriers, a locally based, national auto hauling company (“Accurate Auto” or the “Company”) was experiencing severe cash shortage resulting in an initial review by Amherst.

Amherst’s review process unveiled a continuing reporting issue which, when corrected, revealed a multi-million dollar shortfall in their line-of-credit borrowing base and many other financial issues.

Solution

Amherst acted as CRO and negotiated a short-term accommodation agreement between the Company’s lender and it’s two largest customers which allowed continuing operations while an orderly sale or wind-down solution could be found.

Although potential buyers were found, a sale was not able to be consummated and Amherst instead wound down the Company’s operations.

Results

Amherst was able to facilitate the liquidation of the Company with almost no disruption to existing customers, nearly no damage to the equipment and a minimal cost to the senior secured lender.