MANUFACTURING COMPANY

Challenge:

We advised the company in its purchase by way of Chapter 363 of the Bankruptcy Code of a technically sophisticated manufacturer. We negotiated on behalf of the company with the Bankruptcy Estate and its secured lender. We advised the company during the closing and the transaction was successfully closed.

After September 11th, this manufacturer suffered profoundly and faced three principle challenges:

Weaknesses in its business model, in part, that lead to financial losses.
Inadequate facilities.
Ineffective management.
The company sought strategic alternatives to overcome these challenges and enjoy success.

Solution:

Part I: Consulting with then management, we analyzed the company's business mix and advised the company to pursue those segments consistently profitable and fit within the company's technical capabilities. In order to attract stronger management and access capital markets, after months of research and negotiations, we advised the company in connection with its merger with a public company and the company's raising of additional capital and debt.

Part II: We negotiated for the company the purchase of a plant at a fraction of replacement cost that an international company closed after September 11th in a global consolidation. Next, to compliment and expand the existing capabilities of the company, we searched for and found a distressed private company at a discount to replacement cost that geographically and from a business mix standpoint fit. We advised the company in its asset purchase of the private company.

Part III: We conducted a national search and company hired who we then believed to be a sound CEO and President. Unfortunately, and truthfully, this first choice was a mistake. This individual had worked for an international company; despite his impressive resume, he wasn't ready for the needs of an entrepreneurial company. We regrouped with the company and redoubled our effort. After an intense national search, we secured a talented CEO and President. In less than six months, he engineered a significant turnaround and the staff responded very well to his leadership.

Result:

This company reported record revenue and earnings in calendar Q2 2004.

(Note: we have invested our capital and that of our investors into this company.)