Reece Fulgham, a Managing Director at SierraConstellation Partners, has over 40 years of hands-on accounting, financial management, operations and restructuring experience. Reece’s professional background as a public accounting CPA, auditor, consultant, interim operating & executive management, Board member and Chairman, Audit Committee Chairman and advisor to both debtors and creditors encompasses over sixty engagements across a broad range of industries both domestically and around the globe including Europe, the Middle East and Asia.
Reece spent seven years in public accounting as a CPA in the audit and business advisory groups of Kenneth Leventhal & Company in Los Angeles, California until he departed to join client Davis Wire (aka Davis Walker) in 1989 as the Vice President Finance, after the company’s Chapter 11 filing. Reece managed the bankruptcy process and assisted with the development and implementation of a plan of reorganization which resulted in a sale of the reorganized business and exit from bankruptcy in 1991. Reece participated in the management and disposition of numerous critical issues facing the company including liquidity forecasting and management, product rationalization, steel supply chain rationalization, plant layout & flow assessment, plant closures, consolidations and sales, environmental mitigation, vendor management, litigation and settlements, organized labor contract restructuring, tax and NOL issues.
Since then, Reece has provided interim management, financial and strategic advisory services to both companies in distressed financial situations and their creditors independently as well as with FTI Consulting where he represented a large lender syndicate negotiating the restructuring of the defaulted Hollywood Video retail chain credit agreement. Mr. Fulgham successfully navigated the lenders to a par payoff plus fees before the $1 billion topline company collapsed and liquidated.
Reece especially enjoys and values his independent director and other board/governance roles and has been the independent director on twelve, primarily private equity middle market portfolio companies acquired via judicial or non-judicial balance sheet restructuring and facing critical management, operational, litigation, market and liquidity challenges. Reece participated in multiple governance committees including being the Audit Committee Chairman on ten of the boards as well as various compensation and multiple transaction related committees. Of the twelve restructuring boards, Reece has executed the liquidation of three, participated in the successful sale of six and remains on three highly successful boards in the building products, healthcare and retail real estate businesses.
Reece received his bachelor’s degree in Accounting from Texas State University and was a Certified Public Accountant in California, now inactive.
Relevant Industry Expertise
- Chairman of LMG2, LLC which was formed by a large lender syndicate to accept the collateral consisting of the largest underground parking garage complex in the U.S. located under the famed Millennium Park in Chicago via a deed in lieu transaction associated with a defaulted $600M+ credit facility. Mr. Fulgham worked with the Board to retain new operating and executive management, complete $40M+ in significantly deferred maintenance and clean up capital investments, restructure pricing and marketing, pursued and collected $60M+ from the City of Chicago related to breach of contract. After successfully cleaning up the property, reversing poor operating performance and positioning the asset to take to market, a sale to several pension funds was executed with net lender recovery far outpacing their expectations and basis.
- Operated and advised multiple large domestic and international construction, demolition & remediation companies facing liquidity and performance challenges including Cleveland Wrecking, NCM, NorthStar and Kinetics, noted above, where he worked with management and the company’s stakeholders to solve operational performance, balance sheet and liquidity problems. Reece has deep experience when it comes to managing and optimizing liquidity in working capital intensive environments that also involve percentage completion accounting and accounting estimates.
- Served as Vice President Finance at Davis Wire (aka Davis Walker) after it filed for protection under Chapter 11 of the U.S. Bankruptcy law. Davis Wire was a major processor of steel into many variations of raw and coated steel wire. Reece assisted management with the planning and execution of turnaround components including manufacturing plant sales and consolidations, settlement of environmental and litigation claims, restructuring of the organized labor agreements and mitigating massive negative steel supply chain and market issues. The company was successfully returned to profitability and exited bankruptcy via a sale of the reorganized business.
- Chief Restructuring Officer for a large domestic multi-system cable & internet provider that had entered Chapter 11 to restructure over $300 million of transaction related litigation awards, over $250 million of defaulted secured debt with limited liquidity and facing seventeen consecutive months of subscriber attrition. Reece and team settled all outstanding litigation, implemented a physical systems infrastructure audit and clean up initiative to improve system reliability, speed and bandwidth, invested in marketing initiatives that reversed then consistently grew subscribers which properly positioned the company for sale. Negotiated the breakup and sale of the three regions to three separate buyers and remained on post transaction to manage the infrastructure sharing and system bifurcation plans.
- Independent board member for Structural & Steel Products which manufactures heavy steel products for the highway and transportation sectors including lighting masts, guard rails, overhead and ground level signage. Searched and retained new management who improved operational performance after directing free cash flow to high ROI projects including welder comp strategies, plant reconditioning, new press parts, expand overhead crane system and properly light and ventilate plant.