SUCCESS SNAPSHOTS

Bankruptcy 1

Client Description:

$160 million multi-plant fabricator of structural and mechanical steel tubing
Sold products to a variety of industries including automotive and recreational vehicles
Funded with venture capital, subordinated debt, and senior debt
Roll-up of seven acquisitions with limited integration of operations
Severely damaged by weak steel industry conditions
Irreparably damaged relationships with key suppliers when deteriorating cash flow made it difficult to cover operating expenses and debt service

Actions:

Prepared financial forecasts used to secure the debtor-in-possession (DIP) financing
Prepared weekly budget to actual comparisons with narratives discussing variances as required by the cash collateral order
Assisted in preparing financial related disclosures required by the Court, including the Schedule of Assets and Liabilities, the Statement of Financial Affairs and the Monthly Operating Reports
Worked with counsel for the debtors and for the Unsecured Creditors' Committee
Negotiated on behalf of the company during the divisional divestitures and the 363 auction
Identified and negotiated the final contract with the machinery and equipment auctioneer for the three closed divisions, then coordinated the auctions and helped finalize the proceeds
Developed, analyzed, and evaluated preferential payments
Identified and implemented procedures to preserve cash on hand and increase operating cash flow
Developed accounting procedures to segregate pre-petition and post-petition business transactions
Identified and developed executory contracts and unexpired lease listing and performed cost/benefit evaluations with respect to the affirmation or rejection of each item
Negotiated a management bonus pool amount that was acceptable to both the bank group and management
Closed all remaining operations of the business and coordinated the transfer of operations to a Chapter 7 Trustee

Results:

Secured DIP financing
Assisting in divesting four divisions through a 363 auction
Liquidated three remaining divisions
Assisted Chapter 7 Trustee in final asset dispositions

Bankruptcy 2

Client Description:

$200+ million manufacturer of retail store fixtures with facilities nationwide
Experienced financial distress after several years of expansion due to factors including a slowing retail market and plunging sales to a large customer
Overcapacity in the industry, unfavorable steel tariffs and the bankruptcy filing of a major customer led the company to seek bankruptcy protection

Actions:

Worked with the bank group to secure over $11 million of additional capital as part of the debtor-in-possession (DIP) financing in order to re-establish credibility with vendors
Served as chief restructuring officer to the debtor, responsible for stabilizing both operations and relationships with employees, customers, vendors and the bank group
Reduced operating expenses and investment in inventory
Negotiated contract terms and purchase price between two buyers during the §363 sales process
Monitored transition services agreement between the buyer and certain Debtor facilities and accounted for release of escrowed funds post-closing

Results:

Successfully financed and stabilized the operations during a 5-month sales process
Increased the eventual "stalking horse" bid by approximately $7 million
Successfully sold the company's assets for over $47 million in an auction process that produced two qualified bidders that ultimately drove up the initial price over 15%

Bankruptcy 3

Client Description:

$70 million tin mill service center and decorating business
Invested significant capital to increase capabilities while industry had excess capacity

Actions:

Served as interim CEO during pre-bankruptcy
Served as exclusive financial advisor throughout bankruptcy proceedings
Implemented tight financial/cash and operational controls
Developed and implemented a comprehensive program to optimize conversion of existing raw materials inventory into finished goods in lieu of new purchases, thereby reducing inventory by more than $7 million
Negotiated price increases with customers
Negotiated price and term concessions from key vendors and landlord
Maintained effective working relationship with critical vendors and two labor unions without disrupting customer service or quality for over 5 months
Negotiated debtor-in-possession (DIP) financing with senior lender

Implemented highly competitive proposal process for machinery liquidators, and generated additional interest from more than 10 strategic buyers yielding net auction proceeds of almost $1,000,000 more than estimated liquidation value
Sold remaining raw materials inventories during wind-down at double the estimated liquidation value
Collected in excess of 85% of pre-petition receivables