Force 10 Partners is pleased to announce the confirmation of Alpha Guardian and related Debtors’ Chapter 11 Plan of Reorganization. The Plan was confirmed by the Honorable Mike K. Nakagawa of the United States Bankruptcy Court – Nevada.
Nicholas Rubin of Force 10 Partners served as the Chief Restructuring Officer of Alpha Guardian. As CRO, Mr. Rubin was responsible for leading Force 10’s successful operational turnaround during the heart of the COVID-19 pandemic, which resulted in significant positive operating cash flow and record results. A case study on Alpha Guardian is available from Force 10.
Force 10 also oversaw the financial restructuring process and successfully negotiated a consensual Plan of Reorganization between the Debtors, the secured creditors and the official committee of unsecured creditors, whereby over $100 million of senior secured debt and over $30 million of junior claims were exchanged for interests in a trust, while the balance of the senior secured debt converted into equity of the reorganized Debtor.
Force 10 implemented aggressive efforts to stem operating losses, including reducing payroll, improving operational efficiencies, creating oversight of accounting processes, and collecting significantly past-due receivables. Such efforts resulted in substantial additional cash flow. As a result, the Debtors drew only $1.1 million of a $4.0 million Debtor in Possession financing facility.
Alpha Guardian was established in July 2017 through the acquisition and amalgamation of Cannon Safe and Stack-On Products, resulting in a market leader in the safe and secure storage industry. Alpha Guardian’s brands have led the way in providing consumers with secure storage solutions. Its products are sold to major retailers across the United States under the Cannon Safe, Stack-On Products, and GunVault brands. Alpha Guardian operates manufacturing and distribution facilities in the U.S. and Mexico.
Other professionals contributing to the success of the case are Garman Turner Gordon LLP, legal counsel to the Debtors; Brown Rudnick LLP, legal counsel to the Official Committee of Unsecured Creditors; and Schwartz Law PC, legal counsel to the senior secured creditor.
Force Ten Partners, LLC, is an advisory firm with deep domain knowledge in financial and operational corporate restructuring, valuation, forensic accounting, and complex litigation support. Force 10 serves middle-market companies as well as their creditors, stakeholders, and professionals by providing turnaround-management services (CRO), financial advisory services, expert witness support, and investment banking and M&A advisory services.