Case Studies

Financial Advisor for Sale of Custom Machine Toolmaker

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

Read More close Created with Sketch.
Home·Financial Advisor for Sale of Custom Machine Toolmaker

The Situation

Custom machine toolmaker. $200 million in sales. $42 million debt.

  • The Company was operating in Chapter 11 and was out of cash.
  • $42 million in senior debt; banks assessed $20 million underwater; $30 million owed to trade creditors; $34 million in underfunded pensions.
  • The Company faced a shutdown down and the last of two potential buyers just bowed out of negotiations.

How We Advised

Our team engaged as a financial advisor to sell assets and liquidate the Company.

  • Development of an operating plan that was cash positive and preserved the sale option, and avoided immediate liquidation.
  • Negotiated with customers to fund build-out and maintain the going concern value of the business.
  • Stock of German subsidiary sold for $45 million, paying off senior debt.
  • Structured sales of three operating units raised $24.6 million, which funded the PBGC $20 million and provided a $3 million (10%) payout to the unsecured creditors.
  • $40 million increase over expectations at the time of the filing.

Related Practice Areas

> 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. 

 

> 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. 

Key Contact

For additional information about the engagement or to learn more about our services, contact:

Our Experts