3. Describe the impact of the firm in the restructuring industry.
Tortola believes that by being able to answer ‘yes’ to the 3 questions below, the greatest impact to our restructuring clients will be realized:
- Have we been able to take a circumstance that was contentious, where value was eroding, where many had given up, and create some clarity, bring stability, and bring credibility? Or most importantly, create value rather than destroy it or simply bleed it with fees?
- Have we conducted ourselves with integrity and transparency and have we been able to keep our ethical compass, as well as our personal moral compass, pointed right?
- In an industry wherein it is very easy to become jaded, have we been able to interact with the stakeholders and constituents of a distressed circumstances with a degree of civility and respect for the path that has led them to us?
Tortola has been a trusted resource for Law Firms, Banks, and Investment Funds to help understand complex and murky circumstances swiftly and transparently. Some specific impacts related to the due diligence work and financial analysis include:
· Tortola was inserted by a Federal Judge to determine whether or not a Trustee should be appointed in a case involving a car rental company. Tortola had 7 days to interview the debtor, dig through 100’s of boxes of files, contact dozens of auction lots, and visit multiple sites comparing VIN lists against inventory. Tortola formed a thesis and provided some core evidence that became the basis for an FBI investigation of more than $40 million of fraudulent auto transfers. The Case is ongoing but Tortola’s work was complete with final interview with the FBI 03/03/2015.
· Tortola was asked to investigate a Federal Receiver in a large Ponzi scheme wherein individuals and retirees lost 100’s of millions. The Judge who presided over the Madoff case reviewed a Tortola report, and Tortola provided expert testimony in the Southern District of NY. Tortola determined that when the Federal Receiver turned over commercial properties associated with the Ponzi scheme to a State Court Receiver, he failed to turn over 100’s of thousands of dollars in cash. The court accepted the report and testimony as well as Tortola’s calculations, and cash was eventually turned over. Tortola’s original testimony was provided in the NY court on 10/06/2014 and after follow-up work, the final ruling from Judge Chin was 12/23/2014.
· Tortola was asked to perform due diligence and valuation of a Private Equity Firm and an ambulance company within its portfolio. The loan size was substantial with two banks participating. At issue was whether or not the company was properly executing on its integration of a rollup and properly stating earnings and assets. Tortola’s analysis eventually helped the banks strengthen their credit and offered the debtor substantial direction towards positive change. Tortola’s final report was given to the bank on 6/10/2015.
· Tortola was engaged by a small Distressed Opportunities Fund (related to Tortola) to perform due diligence on a potential acquisition of 3 hardware stores in Georgia. Because of a caustic creditor environment, the process has to be completed in less than 3 weeks. Ultimately, the fund purchased the stores in a 363 sale and the stores, and the jobs, were saved. The 363 sale was consummated in August 2014, the grand re-openings of the stores were held in October 2014, and the final sale of assets was finalized on 12/11/2014.