Successfully completed refinance of senior secured lender with a third-party finance company for transportation company
Courier business that was operating in the south and midwest U.S. was in forbearance with its primary senior secured lender following a covenant default from a decrease in profitability and a deterioration of its liquidity. Company had a successful track record of providing time-sensitive deliveries of critical supplies to FDIC insured banks, pharmaceutical companies, and auto parts businesses, but was experiencing sustained negative cash flow following the loss of several significant customers. A dispute with the U.S. Department of Labor regarding classification of its network of over 1,000 contract, uniformed drivers also contributed to the company’s challenges and future profitability.
Analyzed profitability by lines of business, customers and other segments to determine feasibility of the enterprise.
Developed 13-week cash flow forecast and applied best practices to cash management.
Evaluated A/R borrowing base and identified pre-billings and other issues in loan coverage.
Evaluated payments to secured lenders and identified covenant exceptions.
Prepared refinancing package and solicited third party lenders to take out incumbent lenders.
Enhanced financial reporting package and related borrowing base calculations to provide lenders with better transparency to the business and cash flow.
Completed refinance of senior secured lender with a third-party finance company.
Services & Roles
Turnaround and Restructuring
*Some engagements may have been performed by team prior to joining Harney Partners.