Transaction:
Manufacturer of thermoformed plastic packaging products
Custom packaging company reorganized and sold, including new financing enabling company to thrive
The company, a manufacturer of custom designed thermoformed plastic packaging products for the food, electronic, and retail industries, was having cash flow issues due to increased material costs, stagnant sales, manufacturing variances and under-utilization of facilities and personnel. Their revolver was maxed out and their secured lender had was dissatisfied with the company’s ability to accurately forecast cash flow and timely report/analyze performance. This contributed to a lack of faith in their turnaround plans and caused the bank to consider foreclosure.
Our Approach
Advised on banking relationship, cash flow forecasting, financial analysis, and reporting to outside stakeholders
Advised management and BOD on strategic direction, utilization of personnel, and restructuring options
Regained the faith of secured lender to extend lending arrangement for 18 months beyond initial defaults
Obtained multiple LOIs and led due diligence with potential refinancers
Contacted potential buyers and led due diligence
Engaged Chapter 128 receiver while continuing to provide financial advisory services
Outcomes
Improved performance, greater borrowing base availability and accurate forecasting led to improved lender relationship and a significant extension of the bank’s support.
Gained consensus from ownership to file Wisconsin Chapter 128 receivership to facilitate sale.
Sold business to out-of-state plastic thermoformer with retention of the majority of jobs.
Settled outstanding amounts to secured lender and protected owners personal guarantees.
Services & Roles
Capital Markets
Special Situation Advisory
Financial Advisory
Debt Advisory
Refinancing Liaison
Buyer Due Diligence
*Some engagements may have been performed by team prior to joining Harney Capital.
