Representative CRO Engagement

AEG was retained at the request of the bank group to manage the turnaround of a pharmaceutical manufacturing company experiencing severe distress. Regulatory issues, including challenges from the SEC, the FDA and the DEA, threatened the survival of the enterprise and created an enormous burden to the business.

AEG took on the role of Chief Restructuring Officer and moved quickly to establish authority in the face of a difficult situation that lacked effective leadership. We identified the most severe threats to the business, stablized the liquidity and other operating issues, established appropriate corporate governance, and designed a strategy to work constructively with the regulatory agencies.

By communicating honestly with the governmental agencies, AEG re-established the company's credibility with its regulators and won their support for the operational turnaround. The manufacturing and planning systems were overhauled and the product line pared to meet customer requirements, the company's cost structure and its core competencies. The company's lenders, who had expected to endure a liquidation with anticipated recoveries of 20% or less, received close to a complete recovery through a refinancing.