Industry:Agriculture & Growing
Company:A fully-integrated, multi-plant chicken processor with $200 million in annual revenues. It served all major distribution channels.
Due to a dramatic and unprecedented fall in market prices resulting from the widely-reported "bird-flu" situation, the company's financial strength was being consumed by operating losses of up to $1.2 million per week. Cessation of operations and liquidation appeared imminent. A liquidation of the business would have resulted in almost a total loss of value and several hundred jobs in a distressed employment market. To avert a worst case liquidation scenario, Sylvest needed to be sold quickly to a larger competitor with the financial strength to weather a very depressed market. Speed was of paramount importance.
Focus Management Group was retained as Financial Advisor to assist the Company in managing all aspects of its bankruptcy case and lead its bankruptcy sale process in a timely manner.
Focus Management Group worked closely with management to complete the following:
- Strategic Planning: Focus obtained consensus from all stakeholders, including the Company's primary senior secured lender that the Company needed to be sold quickly to avoid a liquidation outcome.
- Financing Efforts: Focus led the effort to obtain DIP financing in an accelerated timeframe from its existing revolving-loan lender to fund operations until the Company could be sold.
- Maintaining Financial Integrity: Focus spearheaded actions to enable the Company to maintain the financial integrity of the business while operating within budgetary limitations of the DIP-imposed budget.
- Bankruptcy Planning & Execution: Focus prepared a comprehensive communication plan, which was successful in maintaining the support of customers, vendors and employees during the 363 sale process.
- Managed Sale Process on Expedited Timetable: Using our time-effective process, Focus managed all administrative aspects of the Chapter 11 filing on an accelerated basis.
- Successful Sale in a Timely Manner: The Company was sold to a leader in the chicken processing industry just 7 weeks after filing Chapter 11.
- Maintained Employment Levels: Importantly, approximately 800 Company employees maintained their employment.
- Maximized Recovery: Secured lenders maximized recovery of their loans.