Attorney Rebecca DeMarb was appointed the Receiver over the assets of Quality Assembly & Logistics, LLC, under Chapter 128 in early February. Quality’s business, headquartered in Marinette, Wisconsin, was an “essential business” pursuant to the Stay at Home Order. The business was divided between custom assembly, primarily for medical and fire suppression devices, and the production of a continued passive motion device known as a CPM. Despite a severe cash flow crunch, and the unwillingness of the secured creditor to advance additional funds for business operations, DeMarb, together with Quality’s existing management, oversaw and maintained operations while facilitating the asset sales.
After obtaining simultaneous court approval of both sales, DeMarb closed on the sale of Quality’s assembly assets to Arimon Technology, Inc., a Wisconsin company, and the sale of the CPM related assets to Gadelius KK, a Japanese company. If Quality had not continued to fill its customer orders, these sales would not have been possible. Instead, DeMarb would have been forced to terminate Quality’s employees, shut down the business, and liquidate inventory. By keeping Quality operating, DeMarb was able to get Court approval of the sales, close the sales, and deliver the assets of an operating company to Arimon– all in the middle of the COVID-19 crisis.