• 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