UNDISCLOSED CLIENT

DEAL SIZE

$38,000,000

Undisclosed Client

COMPANY

Confidential

OVERVIEW

  • Company’s revenue were declining dramatically due to worst downturn in U.S. automotive industry since World War II
  • Company was in violation of its senior debt covenants, signed only four months earlier
  • Record high oil prices significantly increased the price of resin – a key component to all of the company’s product
  • Company’s vendors had placed a credit hold on their accounts and enforced cash-in-advance terms
  • Frozen debt markets prohibited the company to finance new equipment required by newly-launched programs

ACM VALUE ADD

  • Developed reduction-in-force plan to bring labor to optimal levels commensurate with the decline in sales
  • Met in person with all key vendors to re-negotiate terms and restructure payables
  • Reduced inventory at all four plants by increasing operational efficiency and maintaining constant communication with key vendors
  • Developed daily and weekly flash reports for key management and accounting staff – improving communication and information flow throughout the company
  • Despite a significant decrease in sales, the company maintained consistent EBITDA margins due to implementing cost-savings strategy
  • Reduced inventory by $800,000 or 18.0% and reduced labor by $1.7 million or 14% during twelve month period, increasing the company’s cash flow
  • Successfully developed payment strategy with all key vendors, which included deferral of payments – resulting in a reduction in payables by $2.0 million or 25.0% over a 8 month period
  • Successfully negotiated an amendment to senior and mezzanine debt facilities with revised covenants
  • Negotiated equipment financing deal with key vendor

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