Arandell Corp Emerges from Bankruptcy with $31M Sale to Saothair Capital Partners
100-year-old commercial catalog printer, the third largest in the U.S., with revenues exceeding $80MM and pre-petition loan and lease obligations of $50MM. The company ran into setbacks related to the recent acquisition of a second production facility. Additionally, the company had high debt levels, an unfavorable facility lease and significant funding obligations with two declining multi-employer pension plans. At the time of Harney Partners’ engagement, the company was in default of its senior loan borrowing base and financial covenants.
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.
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)
Services & Roles
Financial Advisor to Debtor before and during Chapter 11 Proceeding
*Some engagements may have been performed by team prior to joining Harney Partners.