Home Results Case Studies Arandell
Printing/Paper Manufacturing
Arandell Corp Emerges from Bankrutpcy 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.​

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 COVID-impacted customer risk with a second lender.​
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)
Services & Roles
Bankruptcy Advisory
Financial Advisor to Debtor before and during Chapter 11 Proceeding​
*Some engagements may have been performed by team prior to joining Harney Partners.