Case Study:
Specialty Packaging & Logistics Company
Specialty packaging and logistics company restores profitability and is recapitalized
A privately held transportation company in the business of packaging highly flammable and combustible products in the oil field service business was losing money, was in default with their senior lender and factoring finance company and didn’t have the liquidity to operate. Harney was brought in to improve operations and cash flow and recapitalize the balance sheet allow for adequate working capital and normal operations.
The Solution
Prepared Thirteen Week Cash Forecasts and enhanced visibility into cash flows and operations.
Streamlined operations by selling excess warehouse space, entering into a Sale Leaseback of owned warehouse space and reducing cost of operations by over $1 million.
Turned around operations from a loss position to positive EBITDA by rationalizing management structure and reducing operating expenses.
Consummated the refinance of the senior secured loan and structured the payoff of the 2nd lien note.
The Results
The companies restructured operations allowing for adequate liquidity to continue operations, shifted focus to other industrial product segments, and improvedprofitability.
Services & Roles
Turnaround and Restructuring
Financial Advisory
*Some engagements may have been performed by team prior to joining Harney Partners.
