Drug Transport, Inc.

Role: CRO / Receivership

Located in Atlanta, GA, Drug Transport, Inc., was forced into bankruptcy after the discovery of fraudulent borrowing base reports. Specifically, the Debtor was not recording its cash receipts in a timely manner, which allowed it to artificially inflate its eligible collateral. In what was an interesting engagement, Mr. Smith replaced an existing CRO who had stopped the fraudulent reporting but had not notified the secured lender.


$40mm revenue regional logistics company filed Ch. 11 due to ongoing fraud allegations. Mr. Smith was retained post-petition and tasked with stabilizing a situation where the Company’s CEO, CFO and former financial advisor had all been removed due to their involvement in the alleged fraud. Mr. Smith moved quickly to streamline the internal accounting functions including the reconciliation of all key balance sheet accounts. Efforts were then quickly transitioned to the development of a Plan of Reorganization, which included four separate entities (jointly administered) and was unanimously confirmed by all three secured lenders, as well as an active committee.


Approximately one year post confirmation, Mr. Smith was retained as Receiver and led a successful forensic examination of the entities in question, uncovering the fraudulent transfer of assets and recovery of significant cash proceeds.

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