Case Studies

Successful Turnaround, Reorganization, and Refinancing for Metal Racking Manufacturer

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

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Home·Successful Turnaround, Reorganization, and Refinancing for Metal Racking Manufacturer

The Situation

Metal racking manufacturer for warehouses with two plants. $60 million revenue. $25 million debt.

  • The Company had significant cost issues with the new plant start-up that exhausted liquidity and created bank covenant defaults.
  • The owner was in a legal battle with his ex-partner, whom he had recently bought out.
  • The owner had used significant cash resources to fund other business ventures.
  • The financial function was a mess, with reporting months behind schedule, poor cash control, and no forward planning.
  • Communications with the bank had totally broken down.
  • The bank wanted to exit the loan, and the company was forced to file an unplanned Chapter 11.

How We Advised

Our experts engaged as Financial Advisor and subsequently as Interim CFO.

  • We got control of cash, created a forward cash plan, and reopened proactive communications with the bank.
  • Our team rebuilt financial processes for timely reporting, forward planning, and cost management discipline.
  • We created a Plan of Reorganization structure that was realistic.
  • Our experts reopened communications between the owner and his partner.
  • Company profitability improved from break-even to $8 million/year EBITDA.
  • We secured $33 million in exit financing from a new lender and restructured $7 million of existing debt.
  • The Company recruited a new CFO.

Key Contact

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

 

> Office of the CFO & Corporate Finance Support 
The financial function is a critical partner in value creation in most businesses. We provide unparalleled support to the Office of the CFO to shape organizational strategy and enhance long-term business value. As CFOs and finance leadership across sectors face increasing demands, understaffing, and unprecedented challenges, we deliver guidance regarding financial planning and operations improvement, risk mitigation, and strategic business intelligence. 

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