Case Study:
Tier-one and Tier-two Automotive Parts Suppliers
Automotive parts supplier avoids bankruptcy and lenders recover 100% of balances
Harney Partners was engaged in a variety of advisory roles from 2007 to 2014 during a very tenuous time for this aluminum die casting company, helping them navigate the 2008 recession and the unprecedented automotive downturn. When Harney was engaged, the company had a 95% customer concentration in the automotive sector and were experiencing a 50% decline in sales volume as overall automotive volumes experienced a similar reduction.
The Solution
Led company through numerous complex negotiations with lenders, suppliers and customers.
Arranged term loans from more than 150 key vendors for a portion of the payables balance.
Obtained credit extensions and revised facilities from both the company’s senior and subordinated lenders until both lenders could be replaced.
Reduced 95% customer concentration in automotive to 50%. Significantly expanded relationship with large motorcycle manufacturer.
Served on the Board of Directors for a transitional period after the restructure was complete.
The Results
Helped the company avoid bankruptcy and continue operations.
Secured lenders recovered 100% of their balances.
Led the company through a successful operating policy deployment to reinvigorate lean principles.
Preserved enterprise value for ownership, which was subsequently able to realize a successful exit at market pricing.
Recognized with an M&A Advisor Turnaround of the Year Award.
Services & Roles
Turnaround and Restructuring
Interim Management
Financial Advisor
Chief Operating Officer
Chief Restructuring Officer
*Some engagements may have been performed by team prior to joining Harney Partners.
