Transaction:
Tier-one and Tier-two Automotive Parts Suppliers
Automotive parts supplier avoids bankruptcy and lenders recover 100% of balances
Engaged in a variety of advisory roles from 2007 to 2014 during a very tenuous time for this aluminum die casting company, helping them navigate the 2008 recession and the unprecedented automotive downturn. The company had a 95% customer concentration in the automotive sector and were experiencing a 50% decline in sales volume as overall automotive volumes experienced a similar reduction. Harney helped company work through complex restructuring of balance sheet including various debt facilities.
Our Approach
Led company through numerous complex negotiations with lenders, suppliers and customers.
Arranged term loans from more than 150 key vendors for a portion of the payables balance.
Obtained credit extensions and revised facilities from both the company’s senior and subordinated lenders until both lenders could be replaced.
Reduced 95% customer concentration in automotive to 50%. Significantly expanded relationship with large motorcycle manufacturer.
Served on the Board of Directors for a transitional period after the restructure was complete.
Outcomes
Helped the company avoid bankruptcy and continue operations.
Secured lenders recovered 100% of their balances.
Preserved enterprise value for ownership, which was subsequently able to realize a successful exit at market pricing.
Recognized with an M&A Advisor Turnaround of the Year Award.
Services & Roles
M&A Advisory
Special Situation Advisory
Senior Debt Placement
Subordinated Debt Placement
*Some engagements may have been performed by team prior to joining Harney Capital.
