Corporate Restructuring: Manufacturing

The Client:
A textile manufacturer of yarns and griege goods was consolidating three companies and sought to refinance the larger operation. Market conditions and plant consolidations had drained much needed cash threatening future operations.

The Problem:
Having successfully completed the refinancing, the post funding audit revealed the Company’s systems and procedures lacking which resulted in the lender applying $6 million of reserves creating an immediate over-advance and a threatened liquidation.

The Need:
Analyze the cash management controls and reporting, immediately implement new controls and reporting to reflect the management of an ABL facility and thereafter investigate all imposed lender reserves.

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