INDUSTRY  Manufacturing

COMPANY – 74 year old CNC machining and aluminum part manufacturer supplying OEM customers in the industrial and commercial industries throughout the United States. 

PROBLEM – This company had experienced losses from a large customer and the continuous annual increase in union pay and benefits without their ability to raise prices with customers.  Their senior lender had called their loan and general creditors started to aggressively collect their outstanding debt balances. 

RESOLUTION – We purchased the operations and assets of this company in a UCC Article 9 sale from the first secured lender.  This resulted in a decrease of the overall debt from $8.8 million to approximately $4.7 million.  We improved the company’s EBITDA from a negative $1.2 million post-acquisition to a positive $2.0 million in the second year while at the same time reducing company sales.  

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