Case Study: Multiflow/Colgate - Lisbon, Portugal

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Overview of Client and Situation

In November 2014, Multiflow closed its facility and filed for insolvency (bankruptcy) in Portugal. Even though the owners sought out Special Process Revitalization with its lenders, they were unable to come to terms agreeable to all parties and insolvency proceedings continued. The facility was formerly owned by Colgate, who subsequently contracted with Multiflow to continue to produce and package body care and household cleaning products. 
The Insolvency Administrator had already committed to a local auctioneer who was going to sell the equipment assets solely on a commission basis.

Rabin's Cash Offer to the Insolvency Administrator 

Rabin stepped in and approached the Insolvency Administrator with a different offer -- an outright purchase of the equipment assets and an option to purchase the real estate as well. The Insolvency Administrator decided to cancel the auction with the local auctioneer for a fee and accept Rabin's offer to purchase the equipment assets for a fixed price. This gave the Insolvency Administrator and the creditors certainty regarding the value of the assets and, in addition, substantially shortened the time for closing out the Insolvency Administration process to the benefit of all involved.

Through its channels, Rabin sold the entire facility as a turnkey to a local bidder who intended to restart the production and packaging of body care products. This, of course, was the best outcome for the city, local economic community, the owners of the real estate, as well as the Insolvency Administrator, due to the creation of jobs and adding renewed excitement for the business community. 

Rabin's Involvement

  • Negotiated all details of purchase & sale with the Insolvency Administrator for Multiflow. 
  • Prepared, photographed, and cataloged inventory for a live and online auction of all machinery and equipment. 
  • Conducted a dual marketing plan, first as a turnkey sale of the entire facility intact with all equipment and, second, as an auction sale to a wide range of possible buyers. 

Deal Challenges

  • Unique end user: Created international marketing plan to appeal to wide range of end users and courted potential operators to site.