The Client is an Injection-Molded Plastics Manufacturer catering to Tier I automotive and furniture OEM customers had been facing losses for multiple years.
The client had defaulted on senior debt, and the lender has informed the debtor of their intention to foreclose. Adding to their troubles, the lender’s collateral value was substantially less than its liquidation value. To further complicate matters, the owner was tired and somewhat combative.
Cascade Partner’s Restructuring Team was engaged as a financial advisor under pressure. They completed a 13-week cash flow and negotiated a Forbearance Agreement to create time. Meanwhile, our Operations Team restructured the manufacturing operations and reporting, resulting in marginally profitable monthly performance. With these changes in place, a sale became the only option to satisfy senior debt in full.
Overall, we provided crucial support during a difficult time, helping to improve the company’s financial situation and better positioning it for a successful sale.
The Cascade Advantage
Our Restructuring Team was able to close a sale to a strategic buyer, negotiating to save all jobs at the company. What’s more, our client was able to pay off the entire senior debt in full, which prompted the senior lender to become the lender to the buyer, ensuring a smooth transition. Additionally, the buyer assumed all trade debt.