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Asset Sale & Debt Restructuring for Steel Structure Manufacturer

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

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The Situation

Steel structure manufacturing and building that built Caesars Palace Spa Tower, Enron Field, Heinz Field, Reliant Stadium, and Soldier Field. $225 million in annual revenues. $40 million debt. 900 employees. The firm had not lost money in any year since its inception in 1946.

  • The national commercial and industrial construction business slackened as financing became harder to obtain.
  • Commodity steel prices increased dramatically over a six-month period.
  • The bank group was unwilling to advance funds during the crisis, and vendors were applying surcharges.
  • Backlog analysis showed low/no-margin business booked for the next 9 months.

How We Advised

Our team engaged as the Chief Restructuring Officer to assess the business and develop a viable business plan.

  • Brought in a new CFO to establish credibility with the bank group.
  • Shut down unprofitable business segments, closed unprofitable locations, increased the efficiency of the fabrication shops, and quickly changed bidding procedures.
  • Excess non-core assets were sold to pay down the debt.
  • A $156 million bonding facility was put in place to help secure lenders' funding commitments.
  • Subordinated bondholders restructured their notes.

Related Practice Areas

> Chief Restructuring Officer (CRO) and Interim Management Services 
Our experienced C-suite interim executives advise and support companies in financial distress, experiencing hypergrowth, or that are challenged by critical vacancies among senior leadership. Whether the leadership void results from operating challenges, a recent officer resignation, the need for added support during busy periods, or during an extended job search for the right permanent hire, our experienced executives provide immediate relief and value. 

 

> Business Plan Validation 
We deliver integrated solutions for distressed and insolvent businesses that maximize recovery, mitigate risk, and restore enterprise value. Our experts are retained to help distressed organizations stabilize operations, protect stakeholder interests, and execute turnaround strategies. We take an operationally-focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Our team delivers hands-on guidance and independent analysis to lenders, creditors, legal counsel, executive teams, boards of directors, and investors. 

Key Contact

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