The Solution
Advised Company on a pre-arranged bankruptcy filing in Delaware Bankruptcy Court.
Helped source, structure and negotiate an innovative DIP financing facility of $31.5 million that retained the incumbent senior lender while addressing COVID-impacted customer risk by bringing in an accounts receivable factor.
Structured the discharge of $175MM of union pension withdrawal liabilities while maintaining the existing CBA and transitioning employees to a matching 401K plan.
Conducted analysis to support decision to close a significant money-losing plant and consolidate operations into a single facility.
Assisted in developing Stalking Horse Offer and partnered with the legal team in negotiating the Asset Purchase Agreement.
Led vendor negotiations to maintain supply chain before and during the case.
Led negotiations with main facility landlord before and during the case.
The Results
Successfully sold company to Stalking Horse Purchaser while paying all secured debt and administrative costs at full value.
Maintained union support through transition from pension benefits to 401K benefits.
Negotiated main facility landlord support during the case and significantly reduced ongoing rent obligation, a pre-condition of the asset sale.
Sale completed in December 2020, within four months of filing.
Maintained employment of 500+ employees.
Retained over 95% of customer base while operating profitably.
Recognized by M&A Advisor for Refinancing of the Year (under $100M)
