Welcome to the June issue of ACM Capital Partners’ Value Line newsletter. In this issue, we have detailed the successful restructuring of a water meter business in Central Florida, a new ABC case as well as a new financing for ACM Capital Fund I.
ACM LEADS FINANCIAL RESTRUCTURING OF WATER METER COMPANY IN CENTRAL FLORIDA
ACM Capital Partners announced it has successfully closed on the restructuring of a water meter business located in Central Florida.
ACM was engaged by the founders of the Company in late 2013 to help restructure the Company’s senior debt and assist the owner with closing the sale of the business. The senior debt had been acquired by a lower tier bank in the Southeast, which had purchased certain loans from a failed commercial bank in Florida. ACM quickly stepped in, analyzed the business’ prospects for 2014 and beyond, obtained updated valuations of the business’ assets and proposed a reduced payoff to the new lender. After several months of negotiations, the deal was consummated in late June 2014. The resulting forgiveness was in excess of 80% of the total indebtedness – or $4M.
“These results speak to our firm’s ability to quickly step in and take charge of a precarious position in which our clients often find themselves,” said ACM Managing Partner, Jim Martin. “The case here is a classic one of a founder and his wife who did everything right including purchasing and developing real estate in their home town where they employed over 75 workers for 40 years; only to see the financial crisis and the lack of adequate capital in the lower middle-market cripple them. Fortunately, we were able to bring relief to our client.”
ACM ENGAGED IN ABC
ACM’s founder, Jim Martin, has become the Assignee in a local Assignment for the Benefit of Creditors case in Florida. Martin, who has been a trustee, receiver and assignee in multiple cases in Florida, was assigned the assets and liabilities for this electronics distributor in late June. “While the state laws regarding ABC’s vary, this avenue remains a viable one for some debtors here and elsewhere,” said Martin. “We deem it a “bankruptcy light” option, which can be a fraction of the costs of a traditional Chapter 11 bankruptcy filing.
ACM CAPITAL FUND I PROVIDES BRIDGE FINANCING FOR CONSTRUCTION SERVICES FIRM
ACM Capital Fund I announced that it has funded a new senior bridge facility for a construction services company located in South Florida. The company had matured debt owed to private parties as well as a maturing loan. The Company contacted ACM Capital, who had previously loaned them money during the restructuring of their affiliated companies in 2012, and asked for a short term bridge facility. The six-month facility is secured by a first mortgage and a UCC on all receivables – or a loan to value of 40%. “We were contacted by this client and had the facility closed within two weeks,” said Jim Martin. “Our pricing is fair given market conditions but our service and expeditious underwriting enabled our client to avoid a default on the existing credit.”