Specialty Chemical Manufacturer

Company Overview

 

Specialty Chemical Manufacturer - A $40,000,000 regional specialty and fine chemical manufacturer.

Engagement Overview
  • The Company was a subsidiary of a similar business located on the east coast which had been closed and forced into a contentious bankruptcy proceeding by its lender who wanted to liquidate both businesses.
  • The Company's private equity owner proposed selling the subsidiary Company as a going concern since it was profitable but the lender resisted.
  • Fort Dearborn was initially engaged as financial advisor for the sale of the Company on the day of its bankruptcy filing; subsequently, we were retained to also sell the shuttered plant on the east coast which had been partially cannibalized by the owners to generate liquidity.

  • During the course of our sale process we contacted over 125 industry and financial buyers worldwide which generated multiple bids

Results
Fort Dearborn's expedited sale process resulted in both the Company and the mothballed east coast facility being sold in Ch. 11 Sec 363 process within 90 days of being retained despite the contentious process.
  • Fort Dearborn was instrumental in negotiating with several potential "stalking horse" bidders for the Company, driving up the purchase price more than 35%

  • We identified and negotiated a "stalking horse" bid for the mothballed east coast facility and led the auction which generated nearly double the "stalking horse" bid.

  • The senior secured lender was made whole, and
  • There was ongoing employment for the Company's workforce.