INDUSTRY – Manufacturing / Service

COMPANY –  A  remanufacturer of large industrial transformers for public utilities and industrial customers throughout the United States and South America.

PROBLEM –  The company had been experiencing several months of losses due to taking on unprofitable orders.  Their senior bank had been applying substantial pressure to either find a new lender or liquidate the business assets.  The company had also deliberately overstated its inventory to improve their financial performance which had been uncovered during due diligence.

RESOLUTION – We purchased  the operations and assets of the business through a UCC Article 9 sale by the bank.  We restructured the balance sheet and developed and implemented a cash based business plan.  We eliminated approximately $600,000 of unsecured debt which had substantially improved the company’s cash flow.  We created and implemented several operational changes which improved the company’s ability to provide a better product faster to its customers.

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