Protiviti helps government contractor
improve financial reporting processes,
stakeholder relationships and overall stability
Restructuring and Litigation – E-Discovery
Client Challenge
Our client was in default of its secured financing debt covenants and was on the verge of losing the right
to manage its business, liquidation and bankruptcy due to negative earnings, depleted liquidity and an
adversarial relationship with its secured lender. The secured lender was motivated to take additional steps
against our client due to inconsistencies in reported financial statements, an inability to predict future cash
flows, a lack of internal controls, and a perception that the management team was being deceptive.
POWERFUL INSIGHTS
Protiviti was engaged to implement financial controls and business model improvements, as well as to
provide a leadership position. Our oversight activities and duties included, among others:
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Attending internal management meetings to ensure complete knowledge of all ongoing business
activities
Actively participating in our client’s meetings with the secured lender to improve relationships
Preparing and reviewing all financial deliverables that were distributed to the secured lender from our
client
Developing internal controls and policies and procedures for the accounting and finance departments
Protiviti’s E-Discovery practice also was retained to assist with the identification, preservation and collection
of electronically stored information in response to a federal subpoena. Protiviti’s acquisition team imaged the
email and file servers as well as approximately 4,500 gigabytes of data from computers and hard drives.
PROVEN DELIVERY
Shortly after the engagement commenced, upon request from the secured lender, Protiviti Managing Director
Charles Goldstein was appointed as chief restructuring officer and interim chief financial officer. Mr. Goldstein
was recognized by the secured lender and the management team as a catalyst for the improvement of fiscal
responsibility, financial reporting, and cash flow management and forecasting. In addition, Protiviti:
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Successfully negotiated an amended agreement and a waiver of all instances of default.
Improved reliability and timeliness of reporting.
Assisted our client with its financial audit, which was completed within 150 days of year-end for the
first time in the company’s recent history. This represented a more than 50 percent improvement from
the prior year and was due to the implementation of internal controls and policies and procedures.
Created a financial model that our client relies upon to prepare projections, model operating
scenarios, and meet reporting and financing requirements.
How We Help Companies Succeed
Protiviti has the ability to manage and lead the decision-making process for companies facing uncertain
outcomes or potential bankruptcy. Our professionals possess the experience and knowledge to identify
the problems as well as the capabilities to assist in making critical decisions quickly to improve a
company’s stability.
In addition to serving as adviser and chief restructuring officer, we have served in the roles of CEO,
COO and CFO. These experiences allow us to bring a practical yet fresh perspective to any situation
and provide current management with unbiased, in-depth analyses of the company’s strengths and
weaknesses in order to identify and implement achievable solutions.
Our turnaround services include:
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Right-sizing infrastructure
Bank loan refinancing
Strategic planning
Management or creditor communication
Liquidity management
Financial projections
Contacts
Charles Goldstein
+1.410.454.6830
charles.goldstein@protiviti.com
About Protiviti
Protiviti (www.protiviti.com) is a global consulting firm that helps companies solve problems in finance,
technology, operations, governance, risk and internal audit. Through our network of more than 70 offices
in over 20 countries, we have served more than 35 percent of FORTUNE 1000® and FORTUNE Global 500®
companies. We also work with smaller, growing companies, including those looking to go public, as well
as with government agencies.
Protiviti is a wholly owned subsidiary of Robert Half (NYSE: RHI). Founded in 1948, Robert Half is a
member of the S&P 500 index.
©2012 Protiviti Inc. An Equal Opportunity Employer. PRO-PKIC-0912-048
Protiviti is not licensed or registered as a public accounting firm and does
not issue opinions on financial statements or offer attestation services.