REYNALDO'S MEXICAN FOOD CO.

Case Highlights

• Named a “Successful Restructuring – 2007” by Turnarounds & Workouts
• Arranged auction of going concern, realizing approximately three times creditor expectations

Case Narrative

DSI was appointed as the Chapter 11 Trustee for Reynaldo’s, one of the largest manufacturers and providers of Mexican food items to restaurants and supermarket chains in the Southern California area, which had $22 million in annual sales and negative earnings. DSI was able to take this failing business and, through negotiations with its lenders, vendors, landlords and other stakeholders, manage it and return it to operating stability. Once stabilized, the business was sold as a going concern, generating proceeds that allowed a substantial dividend to unsecured creditors.