INDUSTRY – Manufacturing

COMPANY – A structural wood component manufacturer for the residential, commercial and agricultural building industries.

PROBLEM – The company suffered serious cash flow problems causing their inability to get raw materials to complete customer orders. They violated several bank loan covenants which prompted their bank to call their loan.

RESOLUTION – We purchased the operations and assets from the bank in a UCC Article 9 sale.  The result of this structure reduced the total debt from $900,000 to less than $180,000 without the use of bankruptcy.  We made several operational changes which dramatically increased the company’s profitability.  The result of this process changed the company’s cash flow and profits from a negative to a positive.

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