Manufacturer of Precision Metal Parts

The company had lost its major customer, resulting in a sales decline from $13.3 million in 2008 to an annualized rate of $5.8 million in 2010, with operating income dropping from $2.1 million in 2008 to an annualized rate of negative $1.8 million in 2010. Sues & Angart was hired in June 2010. We found the company had no cash, less than $100 thousand available on its line of credit and negative cash flow of about $170 thousand per month. The company was less than one month from being unable to obtain raw materials or make payroll, and headed for liquidation.

1. Developed and implemented a cash preservation plan, including obtaining a standstill on debt service payments with the company’s secured lender, equipment lessors and landlord.
   
2. Implemented the bankruptcy model with trade creditors on an out-of-court basis.
   
3. Implemented headcount and other cost reductions.
   
4. Conducted a sale process and implemented a secured party sale.

1. Improved cash flow $500K, allowing the company to operate to complete the sale process.
   
2. Completed the sale of the business as a going concern in 60 days.
   
3. Obtained a much more successful outcome for all creditors than would have occurred in liquidation.
   
4. Saved 65 jobs.