Precision Springs & Wire Forms Manufacturer

Company Overview

Precision Springs & Wire Forms Manufacturer - The Company designs and manufactures quality custom engineered precision springs and wire forms to a variety of industries, including: automotive, lawn and garden, engines, controls and vending.

Engagement Overview
• At the time of our engagement, the Company experienced a dramatic year-over-year decline (18%) in sales primarily driven by the economy and its impact on the Company’s customers (i.e., auto suppliers, agricultural, etc.).  The Company was highly leveraged as a result of operating losses and acquisition related term debt.  The Company’s significant leverage coupled with the sales decline resulted in tight liquidity.

•  Working with management, Fort Dearborn:

•  Prepared a 13-week cash flow forecast to address and monitor the Company’s short-term liquidity needs

•  Reviewed and revised the Company’s annual budget and operating plan

•  Identified profit and cash flow improvements
•  Developed and executed a debt restructuring strategy to generate additional liquidity for the Company
Results
• Identified over $1.5 million in annual profit improvements and improved working capital via inventory reduction and accounts payable management.

• Successfully negotiated with the Company’s senior and subordinated debt lenders to restructure terms including reducing senior debt principal payment amortization, subordinated debt interest rate and converting to payment-in-kind (PIK) interest resulting in increased liquidity.