Home News & Insights Arandell Secures $31.5 Million Debtor in Possession Financing, Signs with Stalking Horse
November 6, 2020
Arandell Secures $31.5 Million Debtor in Possession Financing, Signs with Stalking Horse
By Harney Partners

Chicago, IL– Harney Partners announced that Wisconsin catalog printer Arandell Corporation secured final approval on October 9, 2020 for $31.5 million in debtor-in-possession (DIP) financing, including a $7.5 million revolving inventory loan and a $24 million accounts receivable factoring facility. Arandell filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware in August 2020, with Harney Partners as its financial advisor.

Arandell Corporation has also signed an asset purchase agreement with an investment group led by Saothair Capital Partners, which will serve as the stalking horse in a bidder-to-beat auction set to occur on November 18, 2020.  Stalking horse protections and bid procedures were approved by the Court on October 16, 2020.

According to Arandell, their decision to go through the Chapter 11 process was driven in large part by industry changes resulting from the COVID-19 pandemic and a desire to reduce debt and better position itself to compete and deliver exceptional products and services. The decision followed a comprehensive evaluation of the Company’s strategic options, undertaken with the assistance of financial advisor Harney Partners, restructuring counsel Steinhilber Swanson LLP and Young Conaway Stargatt & Taylor LLP, and investment banker Promontory Point Capital. As one of the consequences of that review, Arandell streamlined its production footprint over the summer, consolidating operations into its Menomonee Falls, Wisconsin facility.

The following team of professionals represent Arandell:
  • Financial Advisors: Jim Harney, Jim Keane, Mac Rowland and Wade Horst of Harney Partners
  • Attorneys: Jim Sweet, Michael Richman, Virginia George and Lisa Eddy of Steinhilber Swanson, LLP; Michael Nestor, Andrew Magaziner, and Matthew Milana of Young Conaway Stargatt & Taylor LLP
  • Investment Bankers: Bill Penkwitz of Promontory Point Capital

About Harney Partners:

Harney Partners is a national, corporate-advisory firm that provides independent, multi-disciplinary solutions for middle-market companies and their stakeholders to overcome financial and operational challenges. For more than 25 years, Harney Partners have helped clients realign their business for immediate stability and implement innovative, results-oriented strategies for future sustainability and growth. Harney Partners has offices in Austin, Chicago, Dallas, Houston and Madison and specializes in restructuring and turnaround, bankruptcy advisory, fiduciary services, transaction advisory, interim management, and forensics and litigation services.

About Arandell:

Arandell is a U.S. leader in catalog print and digital media solutions. For more information about Arandell, visit www.arandell.com.