Case Studies

Wind-down and Transition of Customer Volume Without a Legal Process

J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response

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Home·Wind-down and Transition of Customer Volume Without a Legal Process

The Situation

Metal stamping company. $20 million in annual sales. $5 million debt. 

  • The Company, which relied on the Detroit automakers, saw its volume shrink by 50% in less than 6 months.
  • Management stabilized and saved the business.
  • The automakers then announced an extended holiday shutdown of 6 to 10 weeks.
  • Potential private equity investors disappeared, cash flow losses began to grow, and secured stakeholders froze all available lines of credit.

How We Advised

Our experts were brought in to develop a restructuring plan.

  • As part of the engagement, we developed a new strategy to transition the company’s volume to alternate suppliers smoothly, without filing a bankruptcy petition.
  • The non-adversarial approach implemented by our team worked.
  • OEMs received the parts they needed without any business interruption, tooling was transitioned to new suppliers, the secured lenders were paid in full as the PPE was sold off, and the company is expected to realize 60-80 cents on the dollar with the real estate liquidated.
  • The restructuring plan was accomplished in 75 days with costs well below what they would have been in a contested Chapter 11 proceeding.

Related Practice Areas

> Out-of-Court Wind-downs 
We deliver strategic guidance through the wind-down of business operations or underperforming assets, helping preserve value and reputation while avoiding the disruption, cost, and public scrutiny of formal bankruptcy. Our expert financial and operational advisors apply decades of experience providing exit solutions across a wide range of industries and complexities to deliver, and often execute, comprehensive solutions for distressed businesses. 

 

> 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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