Case Study

Industrial Equipment Lender: Article 9 Sale

A secured lender repossessed logistics-industry collateral and used a public Article 9 sale to recover nearly the full loan balance without litigation.

Author

CMBG Advisors

CMBG Advisors

Reviewed By

Jim BaerLisa Van EyssenNeil MassaDennis WilkesErik MortonLouis R. Dienes

CMBG Restructuring & Fiduciary Services Team

April 7, 2026
Updated
Nationally marketed Article 9 sale after repossession
Public Article 9 collateral sale

Company Context

Industry

Equipment Finance / Logistics

Company Type

Defaulted borrower with repossessed industrial collateral

Process Design

Timeline

Nationally marketed Article 9 sale after repossession

Value Realization

40% above appraised value

Key Facts

Borrower Industry

Logistics

Process

Public Article 9 sale

Marketing Scope

National

Sale Price

40% above appraised value

Loan Recovery

95%

Outcome

The lender recovered 95% of the outstanding loan balance and avoided the cost of litigation.

Executive Summary

CMBG coordinated a public Article 9 sale for a private lender after a logistics borrower defaulted. The assets were marketed nationally, sold for 40% above appraised value, and generated a 95% recovery on the outstanding loan balance.

Case Study Section

Situation

A private lender had repossessed collateral from a defaulted borrower operating in the logistics industry and needed a recovery path that could be executed quickly without drifting into expensive litigation.

The practical challenge was not just taking possession of the assets. It was running a sale process that would be commercially reasonable, compliant under Article 9, and robust enough to maximize value rather than simply dispose of the collateral at a discount.

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Key Facts

The sale outcome turned on disciplined process design, broad buyer outreach, and a collateral strategy that treated the assets as marketable equipment rather than distressed leftovers.

Borrower Industry

Logistics

Process

Public Article 9 sale

Marketing Scope

National

Sale Price

40% above appraised value

Loan Recovery

95%

Case Study Section

Why Article 9 Was the Right Remedy

The lender did not need a full court-supervised insolvency process to enforce its rights. What it needed was a defensible foreclosure remedy that allowed it to liquidate the collateral efficiently while preserving competitive tension in the sale.

A public Article 9 sale offered that structure. It allowed the lender to move without the cost profile of litigation or bankruptcy while still creating a transparent process around notice, marketing, and sale execution.

  • Used a secured-creditor remedy that could move faster than a court process.
  • Created a public sale framework rather than a private disposal with limited market exposure.
  • Positioned the collateral for stronger recovery through broader buyer competition.

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The Process

CMBG coordinated the Article 9 sale from notice through closing. The work included the procedural requirements that make the sale defensible, but just as importantly, the commercial work needed to create real buyer interest.

  • Prepared compliant sale notices and coordinated process timing.
  • Marketed the repossessed assets nationally to reach a wider buyer pool.
  • Managed buyer diligence, information flow, and sale logistics.
  • Coordinated closing mechanics so the process could move from repossession to recovery without unnecessary friction.

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Result

The sale closed at a price that exceeded appraised value by 40%, materially improving the economic outcome for the lender relative to a narrower or less disciplined process.

The lender recovered 95% of the outstanding loan balance and avoided the cost and delay of litigation, producing a faster and cleaner enforcement outcome.

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Key Takeaways

  • A secured creditor remedy can still produce strong value when the process is marketed broadly and run with discipline.
  • Appraisal value is not the ceiling when collateral is exposed to the right buyer pool.
  • Article 9 remedies work best when legal compliance and sale execution are treated as one integrated process.
  • Avoiding litigation is valuable only if the out-of-court process is still transparent, defensible, and recovery-focused.

Note: The case studies presented on this site are anonymized, composite illustrations. Out of respect for client confidentiality, no case describes a specific engagement; names, industries, financial figures, and identifying details have been altered or generalized. Each finding, intervention, and outcome described, however, is representative of work CMBG has executed or is qualified to execute.

Behind this resource

About the author

CMBG Advisors

CMBG Advisors

CMBG Advisors is a fiduciary and strategic advisory firm guiding companies, lenders, boards, investors and legal stakeholders through financial distress, restructuring and corporate transition. The firm's work spans Assignments for the Benefit of Creditors, Article 9 sales, receiverships, bankruptcy support, liquidation and turnaround engagements.

Reviewed by

CMBG Restructuring & Fiduciary Services Team

Jim Baer

Jim Baer

Founder & CEO

Jim Baer founded CMBG Advisors and advises boards, executives and business owners on corporate restructuring, financing, mergers and acquisitions, and corporate securities matters. His experience combines legal practice with executive leadership and strategic business advisory.

Lisa Van Eyssen

Lisa Van Eyssen

Executive Vice President, Head of Administration

Lisa leads CMBG's restructuring specialists and serves as the day-to-day executive contact for clients. Her work spans asset sales and liquidations, creditor claims and distributions, landlord negotiations, and employee and tax matters.

Neil Massa

Neil Massa

Chief Operating Officer, Head of Sales & Marketing

Neil leads CMBG's investigators and recovery specialists, overseeing wind-downs, asset sales, liquidations, and inventory and records management. His background includes more than 35 years in law enforcement and directing forensic investigations involving asset diversion and fraudulent transfers.

Dennis Wilkes

Dennis Wilkes

Head of Information Technology

Dennis brings more than 25 years of IT consulting experience with small businesses, large campuses and municipal facilities. He works across Mac and Microsoft environments, including network configuration and security.