Vinyl & Rubber Tape Product Manufacturer
Industry:Manufacturing & Processing
Service:Financial Advisor to Debtor
Company:Manufacturer of Vinyl and Rubber Tape Products
A manufacturer of vinyl and rubber tape products had defaulted on pension plan payments. When the Pension Benefit Guaranty Corporation filed a lien, a lien priority dispute was triggered between numerous secured creditors. The Company was unable to resolve this dispute in an out-of-court workout and could not obtain financing to transition its manufacturing capacity to China.
Focus was engaged as Financial Advisor to plan a Chapter 11 filing, prepare an operational restructuring plan, administer the Chapter 11 process and maximize proceeds for the Debtor’s estate.
- Focus Professionals developed the Reorganization Plan and negotiated its acceptance with creditors.
- Cash flow activity was carefully monitored and Phase 1 of its manufacturing capacity was successfully transferred overseas to eliminate $12M of unnecessary fixed costs.
- Focus also helped the Company secure exit financing.
- The Company successfully emerged from bankruptcy in 13 months.
- The exit financing yielded $4M of excess availability after proceeds were distributed.