Case Studies

Orderly Wind Down of Steel Service Center

J.S. Held Acquires GLI Advisors, Strengthening Our Construction Project Support Services in the Western US and Hawaii

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Home·Orderly Wind Down of Steel Service Center

The Situation

Steel service center. $50 million of sales. $10 million debt.

  • The Company lost over 40% of its business due to the recession, was losing money, and was unable to pay its bills.
  • The Company’s steel suppliers began dropping prices in order to sell their own inventory, and they began to sell to the Company’s customers direct.
  • The Company’s shareholders concluded that the business was not viable and they desired to liquidate the business out of court without the expense of a bankruptcy.

How We Advised

Our experts were brought in to develop a liquidation plan that would be supported by the Company’s lenders.

  • We worked with the Company team to execute its plan to sell the inventory for the highest amount possible, to collect accounts receivable, and to hold an equipment auction.
  • We communicated with the banks and the largest unsecured creditors to keep them informed of the progress of the liquidation.
  • The liquidation of the Company occurred out-of-court without the cost of a bankruptcy filing.
  • Over $10 million of secured debt with two banks was retired in full.
  • Over $1 million was available for distribution to unsecured creditors.

Key Contact

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

Related Practice Areas

> Out-of-Court Winddowns 
We deliver strategic guidance through the winddown of business operations or underperforming assets, helping preserve value and reputation while avoiding the disruption, cost, and public scrutiny of formal bankruptcy. Our expert financial and operational advisors apply decades of experience providing exit solutions across a wide range of industries and complexities to deliver, and often execute, comprehensive solutions for distressed businesses. 

 

> 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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