Case Studies

Bankrupt Company Sale Nets $21 Million for Owner

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

Read More close Created with Sketch.
Home·Bankrupt Company Sale Nets $21 Million for Owner

The Situation

A $60M annual revenue commercial aviation component manufacturer (highly engineered aluminum and magnesium castings). $1-2 million annual EBITDA barely covered debt service on $15 million of debt. A 70-year-old, third-generation, family-owned company with one plant and 250 employees.

  • The aviation industry collapsed post 9/11.
  • The Company misreported AR on its borrowing base, the cash flow barely supported debt service; six months after a refinancing, the company was shut down due to the uncertainty of the outcome.
  • Information was on two systems due to an incomplete system implementation.
  • Finance and accounting departments were weak and relatively new to the company.
  • The OLV of assets suggested a loss for the lenders; key suppliers funded a DIP loan because the parts were critical.

How We Advised

  • Our experts worked with management to craft a business plan that downsized revenue and improved pro forma EBITDA to $5.5 million.
  • We marketed the Company as part of a section 363 sale process.
  • The successful marketing of the company produced seven purchase LOIs and four refinance LOIs.
  • The stalking horse bid of $30 million provided $5 million to equity; equity received $21 million of value from the final bid at auction of $46 million.
  • All liabilities, including the bank debt, were paid in full.

Key Contacts

Dan F. Dooley, CTP
Senior Managing Director
Strategic Advisory Practice
+1 603 660 8952
[email protected]

 

Mark J. Welch, CPA, CTP
Senior Managing Director
Strategic Advisory Practice
+1 412 498 8258
[email protected]

Related Practice Areas

> Bankruptcy Advisory
Navigating bankruptcy is inherently complex, often involving struggling businesses, litigation, incomplete or inaccurate financial records, potential fraud, and other challenges, in addition to strict court-mandated processes. Our experienced team of turnaround and restructuring experts seamlessly guides clients throughout the process to optimize outcomes for lenders, creditors, shareholders, and employees.

 

> Fiduciary Services
We deliver unbiased, expert solutions in court-mandated and out-of-court situations that demand a third-party fiduciary, including insolvency, fraud, litigation, and shareholder disputes. When companies are in financial distress, become entrenched in complex disputes, or fraud is suspected, lenders, attorneys, and regulatory agencies recommend that federal and state courts or boards of directors appoint our experts as fiduciaries.

Our Experts