Focus Management Group

Manufacturing Industry Experience

Vinyl & Rubber Tape Product Manufacturer

Company:

Manufacturer of Vinyl and Rubber Tape Products

Situation:

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 Scope:

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.

Tasks Performed:

  • 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.

Results:

  • The Company successfully emerged from bankruptcy in 13 months.
  • The exit financing yielded $4M of excess availability after proceeds were distributed.
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