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.