Traxi LLC is a national, special situation advisory firm based in metropolitan New York. Our client  base includes Fortune 500 organizations, institutional lenders and SME businesses that are often  family owned. 

Founded in 2000, Traxi is led by Anthony J. Pacchia and Robert J. Iommazzo, seasoned business  advisors with over 80 years of combined experience. Our professionals come from diverse  backgrounds including restructuring, corporate finance, banking, public accounting,  communications and legal services.  

We provide value-enhancing solutions in:

Candidates for Subchapter V 

A Subchapter V plan can reduce debt and shed burdensome leases and unprofitable contracts.  

To be a good candidate for Subchapter V relief, a business needs to be able to generate sufficient  revenue to cover operating expenses and debt service on secured debt, after any reduction of the  secured debt to the actual value of the collateral.  

Any type of business with less than $7.5 million in total liquidated debt is a likely candidate for  Subchapter V relief.

The Role of the Financial Advisor in Subchapter V 

There are several important and recurring roles for financial professionals in Subchapter V business  cases:  

  • Developing and implementing the debtor’s 3-5 year operating projections that will govern the  payments to which creditors are entitled under a plan and liquidation analysis required to be  included in the plan;  
  • Opining on the reasonableness of the compensation contemplated to be paid to the owners or  other insiders during the life of the debtor’s plan;  
  • Valuing a secured party’s collateral for the purpose of bifurcating the claim into the secured and  unsecured portions; and  
  • Assisting the debtor with financial reporting to the court.  

Traxi’s program for efficiently handling Subchapter V cases involves partnering with the client’s legal  counsel and providing the client with integrated professional services to achieve the optimum  result. 

Benefits of the New Subchapter V 

In February, 2020, a new form of Chapter 11 bankruptcy became available to qualifying small businesses, called Subchapter V,  which streamlines the Chapter 11 process in many ways, making it affordable and effective for the first time for smaller  businesses.  

Subchapter V was originally limited to businesses with no more than $2.7 million in debt, but the CARES Act has greatly  expanded that debt limit to $7.5 million, for at least the next year. This will capture a large number of more substantial  businesses impacted by the COVID19 pandemic.  

Subchapter V provides numerous benefits to small business debtors that are intended to make the bankruptcy process and  successful exit from Chapter 11 easier and far less expensive than a traditional Chapter 11 reorganization.  

These benefits include, among others:  

  • The replacement of the expensive and partisan Creditors’ Committee with a neutral “Subchapter V Trustee”, to oversee  and facilitate the process;  
  • A process designed to encourage (and even require) negotiation between the debtor and its creditor constituents  (overseen by the Subchapter V trustee) with a goal towards a consensual reorganization plan;  
  • Permitting only the debtor to file a reorganization plan throughout the case;  
  • A shortened, 90-day deadline to file a plan of reorganization (which may be extended in some cases), elimination of the  disclosure statement requirement, and use of form plans of reorganization to minimize the legal fees associated with the  bankruptcy process;

Benefits of the New Subchapter V 

Subchapter V provides numerous benefits to small business debtors that are intended to make the bankruptcy process and  successful exit from Chapter 11 easier and far less expensive than a traditional Chapter 11 reorganization. These benefits  include, among others (CONT’):  

  • Plan confirmation rules that focus on what the debtor can afford to pay to unsecured creditors going forward and permit a  debtor to confirm a plan over creditor objection by proposing to use the debtor’s projected monthly disposable income  for a commitment period of 3 to 5 years to repay prepetition unsecured debt;  
  • The ability to restructure secured debt on fair terms without the support of at least one class of creditors (including, for  example, extension of maturity date, elimination of onerous loan covenants, modification of monthly payment amount,  elimination of certain prepayment penalties, elimination of default interest, and reduction of interest rates to current  market rates in appropriate circumstances);  
  • Permitting modification of residential mortgages given by business owners to secure loans extended to the company;  • Elimination of quarterly fees payable to the United States Trustee;  
  • Permitting existing owners to retain their equity interests in the debtor without getting acceptance from unsecured  creditors or making a substantial contribution towards the reorganization to repurchase the equity; and  
  • Retained ability to reduce secured debt to the value of collateral, reject unfavorable contracts and leases, and sell non producing or unprofitable assets and business lines free and clear of liens.

The increase in the debt limit for qualified Subchapter V debtors to $7.5 million will sunset automatically on  March 27, 2021, unless extended by Congress. Smaller businesses that are in financial distress are encouraged  to act now to see if a Subchapter V bankruptcy will assist their recovery from the present crisis and other  financial challenges. We believe this represents a transformative improvement of the Chapter 11 process that  will be highly effective for a wide range of businesses that are burdened with unmanageable debts but are  otherwise viable.  

Traxi’s team members have many years of experience guiding organizations of all sizes through the bankruptcy  process and are uniquely qualified to assist small organizations take advantage of Subchapter V. We provide  flexible fee arrangements that enable clients to quantify costs with a higher level of certainty.

Anthony J. Pacchia 

Founder & CEO 

Anthony Pacchia (Tony) is Traxi’s CEO and Founder with over 30 years of experience working as a  restructuring professional in the banking, legal and investment communities. 

Prior to founding Traxi in 2000, Tony was a Director at Balfour Investors, a private investment firm  engaged in the acquisition and restructuring of financially distressed companies. Before that, he was a  SVP at First Fidelity Bank (nka Wells Fargo), where he managed the bank’s commercial loan workout  department. Tony began his professional career serving as a judicial law clerk to the Honorable Vincent  J. Commisa, US Bankruptcy Court, District of New Jersey. 

Tony has served in a number court appointed roles as Bankruptcy Court Examiner, Trustee and Financial  Advisor. He has served on the Boards of Directors for several major corporations, including Flag  Telecom until it was sold to Reliance Gateway Net Limited, Roberts Industries, Janus American Inc. and  Fair Lanes Inc. 

Tony received a BA in History from the University of Connecticut and a JD degree from the University of  Bridgeport School of Law.

Robert J. Iommazzo 

Managing Director 

Bob Iommazzo offers Traxi clients over 30 years experience in financial, operational and business  consulting services. Bob has restructured businesses in the distribution, manufacturing, real estate,  fast food, casual dining and fine dining restaurants, construction, apparel, and many other  industries. He has a specialty in advising family owned companies. 

Prior to joining Traxi, Bob served as President of Scalamandre Silks, Inc., a luxury home furnishing  design and marketing company. Bob was formerly a principal in the turnaround consulting firm of  Nachman Hays Brownstein Inc. and a Partner with Coopers & Lybrand (now PwC). 

Bob is a graduate of Fairleigh Dickinson University where he majored in accounting. He has served  on many nonprofit boards and was chairman of the March of Dimes North Jersey Chapter. He was  an officer in the Army National Guard.

Lee Pacchia 

Director 

Lee is a multi-disciplinary consultant with a specialization in crisis management, strategic  communications and corporate restructuring. He has over 10 years experience working at the center  of media and professional services. 

He has advised broad spectrum of clients in media, publishing, energy, technology,  telecommunications, and professional services. 

Previously, Lee designed and launched the multimedia channel for Bloomberg Law, one of the most  visible media platforms in legal journalism and reported extensively on many stories in business,  corporate restructuring, bankruptcy and finance. Prior to Bloomberg, Lee clerked for the Hon.  Raymond T. Lyons in the United States Bankruptcy Court, District of NJ. 

Lee holds a B.A. from Wesleyan University and a J.D. from New York Law School. He is admitted to  the bar in New York and New Jersey.

Susan Greco-Ericksen 

Director 

Susan Greco-Ericksen is an accomplished attorney with 25+ years of diverse legal experience counseling  corporations, financial institutions, government and educational institutions in commercial and corporate  transactions, real estate, bankruptcy, banking, and education. She is admitted to the State Bars in New York, New  Jersey and Pennsylvania. 

Most recently, Susan worked as in-house counsel at Avis Budget Group handling commercial real estate matters  including concession agreements with Northeast area airports, leases, and acquisitions. She has many years of  experience as a bankruptcy and commercial litigation attorney with the law firms of McCarter and English,  Lowenstein Sandler, and Gibbons, and also worked as a legal specialist with the New Jersey Department of  Education and State Board of Education drafting Administrative Code. Susan began her legal career as a judicial  law clerk to the Honorable Rosemary Gambardella, United States Bankruptcy Court, District of New Jersey. 

Susan holds a J.D. from Seton Hall University School of Law, a M.Ed. from the College of Saint Elizabeth, and a B.A.  from New York University.

Barry O’Brien 

Director 

Barry O’Brien brings over 30 years of experience specializing in providing operational and financial  advisory services to Traxi. He possesses a wealth of experience, working with clients across a wide  range of industries, including distribution and manufacturing. 

Prior to joining Traxi, Mr. O’Brien has held positions of CFO for a CPG Importer/Distributor, a CFO for  a steel fabricator while bringing them out of Chapter 11, as well as the Controller for a food  manufacturer. Barry has assisted companies in implementing new ERP systems, driving business  strategy and profit growth. 

Barry O’Brien received his bachelor’s degree from Rider University, his Master’s degree from Pace  University and earned his CPA in the state of New Jersey.

Sam Garruto 

Senior Advisor 

Sam possesses 40 years of experience in accounting and consulting and is one of the foremost  authorities in Healthcare consulting and accounting. A former partner with CohnReznick, he worked  as an audit partner as well as a business development specialist for audit/tax and consulting  engagements and as a client relationship strategist. Sam has focused his efforts in serving both  middle market and large clients.  

Sam currently serves on the Board of Trustees of the Kessler Foundation. He has previously served as  the Chairman of the Audit and Compliance Committee for Children’s Specialized Hospital. Sam  served as the financial advisor in the sale of one of the largest private hospitals in the nation (Kessler  Rehabilitation Corporation) to a public company. He was the Chairman of the Board of one of New  Jersey’s largest Preferred Provider Organizations (Consumer Health Network) and Vice Chairman of  New Jersey’s first privately owned Health Maintenance Organization (Crossroads Health Plan). Both  companies were sold under his leadership and guidance to public companies.

Neil Edwards 

Senior Advisor 

Neil helps companies produce strategy-driven results in the areas of growth, innovation,  and transformation. Most recently, he turned around a machine learning data science company into an exit  with a Kleiner Perkins backed supply chain analytics company. Senior executives trust his collaborative,  execution focused style to lead their strategic and operational initiatives. 

Neil has a 20+ year global (China, Europe, Israel, US) track record performing C-suite and consulting roles in  the finance, government, media, tech/IT, and telecom sectors. Neil is also a contributor to Forbes covering  digital, RPA and AI. 

Neil holds a BS in Mathematics from The Citadel and an EMBA from Duke University.

Bill Schaffner 

Senior Advisor 

Bill brings over 25 years of turnaround and operational experience, particularly in the areas of sales,  manufacturing, financial management and strategy.  

Prior to joining Traxi, Bill was the President of Schaffner Manufacturing Company a mid-sized producer of  metal finishing products. In his tenure as President, Bill successfully grew the company through a  combination of organic growth and an aggressive acquisition strategy, effectively doubling revenue and  increasing EBITDA threefold. Completing three major deals in ten years, Bill demonstrated expertise in  identifying, purchasing, and integrating distressed assets into the company’s operations. Schaffner  Manufacturing was sold in 2019 to Jason, Inc. 

Bill holds his BS in Industrial Engineering from Penn State University. He earned his MBA from the  University of Louisville.

Paul Fried 

Senior Advisor 

Paul’s experience spans investment banking, distressed assets acquisition, workout, recovery,  securitization, high-yield structured finance, equity joint ventures and fundraising. He’s handled over  $10 billion in distressed assets, loans and securities. 

Paul is Executive Managing Director at Greystone Bassuk a real estate capital intermediary and  financial advisor to major developers. Previously Paul was at L&L Holding Co, where he headed the  company’s capital raising activities and was responsible for raising in excess of $2.5 billion of equity  across their portfolio. Prior to that Paul was a Principal with AFC Realty Capital where he originated  high-yield structured real estate financings and spearheaded the firm’s Restructuring practice. He  was also a Principal of Allegiance Capital Partners and a Director at Deutsche Banc Mortgage Capital. 

Paul holds his BA from Rutgers College where he graduated with distinction. He earned his JD from  Rutgers University Law School and was an editor of the Law Review. He is a council member of Urban  Land Institute.

Garrett Sheehan 

Senior Advisor 

Garrett Sheehan (Gary), is a Senior Advisor at Traxi. He is an expert at sourcing institutional and  offshore capital for real estate development. 

Gary is the President of the Florida Fund LLC, an affiliate of ARCTRUST, a private REIT focused on the  acquisition and development of net leased properties. Before that he was a Managing Director at  Sentinel Real Estate Corporation, a private New York-based real estate investment manager and  before that, he was Managing Director at Jones Lang Wootton, North America (now Jones Lang  LaSalle), serving as a member of the Executive Committee and co-head and partner in its  Investment Sales and Finance Group. 

Gary received a Bachelor of Arts degree from Trinity College and a graduate degree from Oxford  University.

For more information, please visit us at www.traxi.com. 

Traxi, LLC, 

18 Bank Street, Suite 200, 

Summit, NJ 07901 

Phone 212.465.0770 

Fax 212.465.1919 

info@traxi.com