Case Studies

Company Restarted Post-Flood With New Loan

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

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Home·Company Restarted Post-Flood With New Loan

The Situation

Manufacturer of infant, youth, and children’s hardwood furniture. $25 million annual sales revenue. $10 million debt.

  • “Normalized” business operations came to an immediate halt following the “100-Year Floods” in the Ohio Valley.
  • Flood damage forced manufacturing operations to shut down for over 4 months.
  • The Company could not ship customer orders and, as a result, lost many long-term customers.
  • Insufficient working capital to support flood damage repair and manufacturing restart expenses.

How We Advised

Our experts were retained to perform a business validation assessment for the company and the secured lender.

  • Found $1.5 million to $2.5 million bridge loan to fund flood damage repairs and expand working capital to restart the business and release component parts containers being held at the port-of-entry for release of payment.
  • Secured SBA Disaster Relief Agency funding to bridge the business restart and re-establish lender support and forbearance during this period.
  • The Company secured long-term, low-interest SBA funding and successfully restarted the business.
  • Following the restart, the company was sold to an investor group, and personal loan guarantees were released.

Key Contact

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

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. 

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

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