Industries

JTS, INC.

• Industry: Computers/IT/Software
• Service: Due Diligence

Situation

JTS, Inc., a hard-drive manufacturer with operations in the United States and India, was in default of its $60 million line-of-credit only 30 days after closing the line with a new lender.

Action

GGG, at the lender’s request, reviewed the situation, uncovering fraud, channel stuffing, over-stated Account Receivable and a total lack of inventory controls.

Results

Upon taking control of the situation, GGG worked off inventory and provided discounts to A/R to incentivize payments.

A large hedge fund provided additional equity and the existing lender was paid in full within 90 days.

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