Case Studies

Business Plan Validation of Paper Processor

J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response

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Home·Business Plan Validation of Paper Processor

The Situation

Multi-plant paper-processing company converting and providing services. $100 million in annual sales. $ 50 million in debt. Multiple divisions serving: office products, print solutions, medical supplies, promotional marketing, and technology services.

  • Multiple services from paper converting to promotional marketing across several sales channels: commercial, industrial, and consumer.
  • A highly competitive industry with low margins made the company's debt structure overly burdensome.
  • The liquidity crisis impacted working capital requirements.
  • The company faced challenges, including labor issues and customer pricing pressure, following the consolidation of three paper conversion and printing companies.
  • Challenges resulted in annual operating losses of $2 million – $3 million and the violation of loan covenants.

How We Advised

Our experts retained by the debtor to perform a comprehensive business plan assessment.

  • Analysis conducted by our team validated the business plan and identified manufacturing and overhead cost savings exceeding $3 million annually.
  • Confirmed viability of the debtor’s business plan and projections and developed a corporate viability plan to return the debtor to profitability.
  • Excess non-core assets were sold to pay down the debt.
  • A $156 million bonding facility was put in place to help secure lenders' funding commitments.
  • Subordinated bondholders restructured their notes.

Related Practice Areas

> Business Plan Validation 
We deliver integrated solutions for distressed and insolvent businesses that maximize recovery, mitigate risk, and restore enterprise value. Our experts are retained to help distressed organizations stabilize operations, protect stakeholder interests, and execute turnaround strategies. We take an operationally-focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Our team delivers hands-on guidance and independent analysis to lenders, creditors, legal counsel, executive teams, boards of directors, and investors. 

 

> Debt Restructuring Services 
When a company is in financial distress, our Strategic Advisory experts design and implement debt restructuring and refinancing strategies tailored to the company’s unique circumstances. We help middle-market businesses stabilize operations, improve liquidity, and optimize their capital structures. 

Key Contact

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