• At the time of our engagement, the Company reported revenue in excess of $25M and was owned by a private equity fund. The fund hired Fort Dearborn to: (1) evaluate and revise management’s 5-year strategic plan, (2) assess the impact of pending environmental litigation on the capital structure and (3) identify profit and working capital improvement opportunities.
• Working with management, Fort Dearborn:
• Reviewed and revised the Company’s annual budget and operating plan including a detailed review of the Company’s revenue forecast and timing as impacted by the Department of Defense budget including Congressional defense bill/budget and House Appropriations Committee plus-ups.
• Reviewed lean manufacturing actions and identified profit and cash flow improvements.
• Assisted in restructuring the Company’s debt with two institutional mezzanine lenders.
• After reviewing the Company’s case with outside legal counsel and assessing the potential range of overall exposure, FDP determined that the Company could experience limited borrowing capacity and reduced liquidity; thus requiring a subordinated debt restructuring.
• FDP presented its findings and proposed restructuring to the Company’s two institutional debt holders.