NATURE OF ASSIGNMENT:
Primary: Company Services / Financial Advisor to Debtor
Secondary: Bankruptcy
Primary Industry: Manufacturing & Processing
Company: Manufacturer of Vinyl and Rubber Tape Products
Situation: A manufacturer of vinyl and rubber tape products had defaulted on pension plan payments. When the Pension Benefit Guaranty Corporation filed a lien, a lien priority dispute was triggered between numerous secured creditors. The Company was unable to resolve this dispute in an out-of-court workout and could not obtain financing to transition its manufacturing capacity to China.
Focus Scope: Focus was engaged as the Debtor’s financial advisor to plan its Chapter 11 filing, prepare an operational restructuring plan, administer the Chapter 11 process and maximize proceeds for the Debtor’s estate.
Tasks Performed: Focus developed the reorganization plan and negotiated its acceptance with creditors. Cash flow activity was carefully monitored and Phase 1 of its manufacturing capacity was successfully transferred overseas to eliminate $12M of unnecessary fixed costs. Focus also helped the Company secure exit financing.
Results: The Company successfully emerged from bankruptcy in 13 months. The exit financing yielded $4M of excess availability after proceeds were distributed.