State & Federal Receivers

Sherwood Partners and its principals serve as State and Federal Receivers. As Receivers, Sherwood's primary focus is on maximizing the enterprise value of a company while limiting disputes and legal fees. In a receivership, we take a proactive role in improving operations (if any), monetizing assets (as appropriate), and distributing proceeds to creditors.

Sherwood is well-positioned to assist secured creditors or other entities with the necessary steps to effectuate a Receivership and take possession of the collateral. We work closely with the management team and employees to take immediate steps required to protect asset value. Sherwood Partners has initiated hundreds of distressed sales processes and is adept at maximizing value in such settings.

Historically, Receivers with both business and liquidation experience deliver better results. A Receiver needs more than just legal experience when there is a business to monetize; understanding the complexities of the business and how to work with all classes of creditors is essential.

As a Court-Appointed Receiver, Sherwood Partners:

• Quickly takes possession of all or substantially all company assets, pursuant to a court order or a security agreement.
• Monetizes the assets in the most beneficial manner to optimize proceeds.
• Pays creditors based on priority status, with secured creditors leading the way.
• Facilitates processes and actions for secured creditors and limits potential issues from controlling parties.

Benefits of Using Sherwood Partners as a Receiver

• Allows a company to overcome situations where owners are deadlocked over critical decisions or when management is ineffective in the final stages of operation.
• Removes doubts about facts and information concerning the business.
• Installs controls and processes for monetizing assets and collecting proceeds for creditors.
• Monetizes the assets as effectively as possible.

Sherwood Partners is more than the normal Trustee, as we can handle every aspect of operating or winding down a company. This is what we do.

Trustee Representation

Many trustees have retained Sherwood Partners to represent them as financial and IP advisors, sales agents, and operating consultants. Sherwood's primary role in such engagements is to initiate and work towards a sale of the debtor's assets, generally Intellectual Property (IP). With our deep roots in Silicon Valley, Sherwood Partners has developed in-depth expertise in IP monetization and has built strong relationships with potential buyers of IP and technology.

In this role, Sherwood Partners works with the Trustee to market the assets, create a dedicated and secure 'smart room' for key information, set bid deadlines, and manage the terms and conditions of the sale. We may also work with the Trustee to obtain court approval for the best offer. Sherwood Partners has been able to balance the need for a timely sale process with the challenges posed by limited information.