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.
A minority-owned CPG business that provides premium hair and skin care products to the multi-cultural consumer was facing multiple challenges. Launched in the founders’ garage in 2014, the company grew net sales to $20 million in 2019. Unfavorable sole supplier pricing, unmanaged cash volatility regarding promotional spend, and increasing working capital needs led to borrowing base over-advances, reduced line availability, significant delinquent trade payables, and a large balance owing to its major distributor for past promotional activity.
Gabriel Holdings is the largest packaged store in the San Antonio area. The Company filed for Chapter 11 Bankruptcy in the Western District of Texas in December 2019. A Harney professional was appointed as Chief Restructuring Officer in March 2020 to get the company through a success reorganization and sale process.
A supplier in the Permian basin (Texas) of chemical solvents and anti-corrosion products was in default with its senior secured lender. The default was a result of misreported operating results and negative EBITDA during the Covid-19 downturn in the oil and gas industry.
Retained as financial advisor by the secured lending group of consulting firm to assist in negotiations of an out-of-court restructuring
This custom packaging company was experiencing declining financial performance. This, combined with an unwieldy ownership and management structure and an overreliance on a single customer, created uncertainty with its senior lender. After a covenant default, the senior lender requested that the company find alternative financing.
In 2016, 80% of a centrifuge manufacturer was acquired by a Chinese firm with a put option given to the seller for the remaining 20%. In 2018 the put option was exercised and demand was made of the Chinese parent to purchase the remaining 20%. However, the Chinese parent was unable to raise the funds and defaulted on the demand. Litigation ensued and the matter came to ahead in early 2020. As the 80% shareholder, the Chinese parent looked to put the Company into Chapter 11 to resolve the dispute. With the guidance of Harney, the parties ultimately resolved their differences and reached agreement on a restructuring and the purchase of the 20% interest.
A religiously affiliated organization developed and built a 53-story high-rise continuing care retirement facility with 248 living units in an urban location. However, due to market economics, it was only able to fill 82 units resulting in a default on the bonds and a draw on the letter of credit. The facility was built on land leased from an affiliate of the religious organization that complicated alternative use options.
An operator of 80 SNFs faced negotiations with HHS over fraudulent billing; negotiations with its revolver lender; and senior subordinated credit holders. Management was looking for a CRO that would work with the management team/owners to solve significant financial problems. Issues included excessive operating costs and employee retention, as well as care issues impacting Star Ratings.
This oilfield services company designed and produced a nanotechnology ceramic proppant used in oil and gas “fracking,” but the operations never achieved sufficient volume and economies of scale to reach a profitable cost structure prior to the macroeconomic downturn in that industry. Chapter 11 debtor in Houston, TX that raised approximately $150MM in equity, and at the time of filing owed more than $40MM in senior and subordinated secured debt.