Industry – Plastic
Territory – East Europe
Client – Manufacturer of Polycarbonate products.
Case – The client established an equal equity joint venture (JV) with local partners in an East European country, for manufacturing and marketing of Polycarbonate products. The client encountered a dispute with the local partners and practically lost control over the JV’s operations. Attempts to resolve the dispute failed and it led to a dead-lock situation, which required an immediate solution.
Actions –Our experts used Rapid Case Assessment (RCA) procedure, which provided the following information:
- The sequence of events that led to the dispute.
- The local partners’ profile and past business records.
- Implications related to the local commercial landscape and legal system.
Based on the RCA results, the client instructed A. Yakim to prepare and implement an action plan, aimed at selling its equity. An action plan was prepared and implemented, as follows:
- A. Yakim’s experts replaced the client’s representatives in the JV’s Board of Directors and management team. This enabled our experts to access the JV’s financial and accounting records.
- Comprehensive examination discovered evidences for wrongdoings and mismanagement by the local partners.
- Based on the findings we initiated legal procedures and succeeded to appoint a liquidator.
Outcome – The appointment of the liquidator “broke” the dead-lock and forced the local partner to accept JV’s acquisition by a third party, in a price that exceeded the client’s investment.