William F. Herzog

Mr. Herzog possesses over 25 years of broad-based business transaction experience with public and non-public companies. Mr. Herzog is most effective in providing and implementing solutions for creditors of financially troubled companies. Mr. Herzog has extensive experience in real estate, finance, healthcare and service industries. He has managed IPO’s, acquisitions, turnarounds, and bankruptcies. He has a strong background in financial reporting, investor relations, negotiation, treasury management, budgeting, valuations, and cash and financial forecasting.

Mr. Herzog has performed asset recovery, litigation management, expert testimony and Trustee services for the largest financial institutions in the country including JPMorganChase, Bank of America, CIT, Credit Suisse First Boston, and National City Bank of Philadelphia. Mr. Herzog has also served as financial advisor to various unsecured creditor groups and financial institutions. Additionally, he has served as Operating Trustee for the Office of the US Trustee.

At the request of Prudential Capital Group, Mr. Herzog is currently serving as Trustee for Cornerstone Creditors Trust to quantify, evaluate, pursue, and settle litigation claims on behalf of unsecured creditors of Cornerstone Products, Inc.

Most recently, the Office of the US Trustee appointed Mr. Herzog Chapter 11 Operating Trustee of an enterprise that operated 14 nursing homes in Texas. Mr. Herzog was appointed to provide a report to the US Bankruptcy Court concerning alternatives for reorganization of the enterprise or dismissal of the proceeding. Mr. Herzog’s report was completed on time and was well received by the US Trustees Office and the Court. In accordance with his recommendations the proceeding was dismissed after all homes were transferred to the State of Texas to protect patient care.

JPMorganChase hired Mr. Herzog as financial advisor to maximize recoveries from qServe Inc., a cell phone tower construction company based in Kansas City, MO. qServe filed for protection under Ch. 11 of the Bankruptcy Code on June 21, 2002. In his capacity as financial advisor, Mr. Herzog reduced JPMorganChase Bank’s exposure from $8 million to under $1.0 million through the sale of inventory and real estate and collection of delinquent accounts receivable.

CEC Liquidation Trust was established to wind down the affairs of Con-Equip Inc. and Owsley Bros. Inc. Con-Equip and Owsley leased and sold heavy construction equipment to contractors. Mr. Herzog was asked by a consortium of secured lenders, CIT, Fleet Capital, Bank of America and National City Bank of Philadelphia, to liquidate the companies. Mr. Herzog managed the sale of $40 million of equipment, closed both home offices and all eight branch locations and successfully recovered twice the amount expected in the plan for the unsecured creditors.,. Mr. Herzog, along with co-plaintiff, Texas Growth Fund, was awarded a $17 million judgment against former owners in connection with the sale of the business. The matter was successfully settled on appeal.

Healthcor Holdings Inc., a home health agency providing durable medical equipment, nursing, and pharmaceuticals to 65,000 patients in 8 states, filed for protection under Title 11 of the Bankruptcy Code on July 27, 1999. Subsequently all assets were transferred to Healthcor Liquidation Trust. Mr. Herzog served as Chief Operating Officer of the company, and then was asked by members of the Official Committee of Creditors including Credit Suisse First Boston, senior secured lender and the largest single bondholder, to serve as Liquidating Trustee. Mr. Herzog is overseeing collection actions against serviced patients primary and secondary commercial insurers, finalizing Medicare cost reimbursement reporting and settling accounts with the Healthcare Financing Administration. Mr. Herzog was successful in reducing the secured creditors loan from $16 million to $2 million and distributed to the unsecured creditors the highest amount estimated in the Plan of Liquidation.

Prior to that Mr. Herzog was hired by M.A.P.A., a medical receivables management firm providing GAP eligibility and Medicare collection services to 30 hospitals in Texas, to shepherd the company through a Chapter 11 proceeding. Mr. Herzog helped successfully downsize the Company and position it for sale. Mr. Herzog was responsible for managing cash flow, accumulating and organizing information to present to potential buyers, articulating on the value of the company to potential buyers, quantifying creditor and administrative claimant’s liabilities, and monthly operating reports. Mr. Herzog’s efforts resulted in the sale of the company to a competitor within six months.

Prior to this Mr. Herzog was Chief Financial Officer of Naco Finance Corp. Mr. Herzog managed the initial capitalization of the Company through an IPO of $145 million of senior notes. Mr. Herzog was responsible for receivables management, management reporting, SEC reporting, cash management and banking relations. With the liquidity from the collection of the receivables Naco Finance purchased two companies from the RTC and merged the Companies to form USTrails. Mr. Herzog convinced the debt holders to defer sinking fund payments and apply the cash to acquisitions. Through a plan of reorganization and bankruptcy proceeding 10% of the debt securities were converted to equity ownership of USTrails.

Mr. Herzog holds a B.S. in Accounting from Texas Tech University. He is a licensed C.P.A in Texas.