Insolvency Services: Manufacturing

The Client:
A leading manufacturer of automobile and light truck component parts for both original equipment manufacturers (OEM’s) and Tier 1 suppliers operating four production facilities in Ohio, Michigan and Ontario, Canada.

The Problem:
In launching $44 million of new production in different plants, the Company had run into equipment and production difficulties leading to increased operating costs generating an over-advance of $5.3 million. A recently appointed Chief Restructuring Officer had developed and missed three business forecasts in five months exacerbating lender fatigue and a financial crisis was evident.

The Need:
The Company was out of control, detailed cash management had to be instituted immediately to provide three lenders with an accurate assessment in order to obtain a financial commitment. Additionally, as a bankruptcy filing seemed imminent, none of the lenders would provide a DIP.

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