Bank of America and CIT extended a multi-million dollar loan facility to Jaco Electronics, a public company. The lenders relied upon Sound Shore Financial’s detailed quality of earnings assessment to evaluate their position with the loan. Through an in depth analysis of management, the industry, financial forecasts and the general condition of Jaco Electronics, SSF concluded and recommended that the lenders work down their exposure to Jaco.
In an effort to shore up their position, the lenders requested that Sound Shore expand their duties and involvement to the overseeing of operations on a daily basis while being given the daunting task to create an exit strategy in the increasingly complex situation.
As a result of Sound Shore’s tireless efforts, Jaco’s financial position was improved and the lenders loans were further reduced. This allowed Sound Shore to search for a hard money financial institution that resulted in Bank of America and CIT being paid in full.
Bank of America SVP Richard Levenson said:
“Joe Iannuccilli did quite a job for us and CIT on Jaco Electronics. He found the crud in the receivables and the inventory, helped manage the checkbook to nurse the company to a refinancing that he arranged and made the necessary introductions for. Wow, pretty impressive. Joe’s staff all know the business, the tricks of the trade, the tricks that most borrowers pull and they understand collateral in its truest sense.”
