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Financial Advisor to UCC of Commercial Vehicle Component Manufacturer & Supplier

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

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Home·Financial Advisor to UCC of Commercial Vehicle Component Manufacturer & Supplier

The Situation

Diversified manufacturer and supplier of commercial vehicle components to OEMs. $570 million annual sales. $270 million debt. Market leaders in six different segments with well-known brand names: Bostrom and Imperial. 2,450 employees.

  • The economic downturn reduced demand for heavy-duty truck components.
  • Sales declined by more than 40%, from $1 billion to $570 million over 2 years.
  • Liquidity was insufficient to withstand the catastrophic sales decline, which was substantially greater than during previous cyclical downturns.
  • The company filed for bankruptcy as part of a prearranged capital restructuring.
  • Note holders received 98% of the new equity.
  • Old equity received 2% of new equity plus warrants.
  • $140 million new debt rights offering.
  • The plan called for Unsecured creditors to be reinstated in full; however, the enterprise and warrant valuation dispute between secured debt parties and the equity committee jeopardized creditor recovery.

How We Advised

Our experts engaged as Financial Advisor to the Unsecured Creditors Committee.

  • Unsecured creditors needed sophisticated financial advice and analysis to understand constant changes to their potential exposure and to safeguard their interests.
  • Unsecured creditors paid in full on pre-petition claims and retained good working relations with creditors post-emergence.
  • The plan was confirmed and made effective within 6 months of filing .
  • The company emerged from Chapter 11 bankruptcy protection in five months.
  • The Chief Executive Officer indicated that an improved financial structure will allow it to expand its product offerings.

Related Practice Areas

> Bankruptcy Advisory 
Navigating bankruptcy is inherently complex, often involving struggling businesses, litigation, incomplete or inaccurate financial records, potential fraud, and other challenges, in addition to strict court-mandated processes. Our experienced team of turnaround and restructuring experts seamlessly guides clients throughout the process to optimize outcomes for lenders, creditors, shareholders, and employees. 

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

Key Contact

For additional information about the engagement or to learn more about our services, contact:

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