Restructuring and recovery case study
How one company stabilized their near term liquidity position
The issue: A multinational industrial products company faced deteriorating economic conditions and difficulty with servicing their financial obligations.
Our approach: We helped the Company analyze their near term liquidity needs and evaluate various solutions, including the effects of a potential Chapter 11 filing. We addressed sensitivities around working capital contraction and the Company’s ability to satisfy covenants within a proposed debtor-in possession facility. We also helped management address the concerns of both suppliers and customers as they faced their financial challenge.
The outcome: The restructuring work created short term liquidity so that Management could evaluate a broader range of financial and strategic alternatives. Those plans continue to work and today, the Company is better positioned to secure operating efficiencies and has a capital structure suited to its operating profile.
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