Recent acquisitions, capital expenditures and facility moves resulted in tight cash situation and a significant reduction in earnings for this high growth, equity backed printer. Altman quickly implemented new cash management systems, improved financial forecasting measures and helped Management to focus on sales and operating efficiency improvements. Negotiating directly with key vendors and the Company’s lenders, Altman was able to ensure continued liquidity while the Company reduced costs and grew sales necessary to return to historic levels of profitability.
A difficult implementation of a new ERP system left management with significant losses, limited information, bloated middle management and little working capital. Altman worked closely with management to improve cash management systems and develop a plan for dealing with the over 500 vendors with amounts more than 90 days past due. Immediately, Altman was able to negotiate an over advance facility necessary to fund the seasonal losses and preserve liquidity. Once the cash situation was under control, Altman worked with management to develop new management tools and metrics to manage the hundreds of employees and independent contractors in the field throughout the country. The Company successfully, managed through this situation and was able to return to profitable growth within 9 months. This engagement ended with a successful recapitalization providing for payment in full to the senior lender and adequate working capital for the Company’s future growth plans.
This 150+ location, venture capital backed retailer had a history of significant losses and Equity faced an imminent $6 million capital call when Altman was engaged. The Altman team quickly provided the Company’s Board of Directors with an overall assessment of the business, management and the current financial plan. Working with management, Altman was able to identify $4 million in operational savings necessary to develop a breakeven plan for the first time in the Company’s recent history. At the same time, Altman assisted management in negotiating a forbearance agreement with the Company’s lenders and key vendors. The forbearance achieved 2 important goals, 1) it deferred the capital call and 2) it provided management and the Board the time it needed to negotiate a merger of the Company. Through the merger our client significantly increased their revenue. Altman assisted management in the successful capital restructuring of the newly merged entity including the completion of a PIPE transaction.
Facing declining sales and mounting losses, this 30+year old Company was operating with almost zero cash availability. Altman was called in when it became clear that collection of a $1.0 million account receivable was in question, further compounding the working capital shortfall of this asset based borrower. Working quickly with management, Altman oversaw the development of a new, more realistic financial plan, commenced the necessary reductions and changes, negotiated a 6-month forbearance including an overdraft facility, and implemented new tools for sales and working capital management within the first 5 weeks of the engagement. Continuing to work with the Company over the next 12 months, the Company achieved a successful turnaround, returning to profitability by the third month and continuing on to erase the significant losses incurred in the first 6 months of its fiscal year. Following the successful turnaround of operations, Altman assisted the Company in a debt restructuring with significant positive results. The Company exited its historic asset based arrangement through a traditional refinancing that resulted in an increase of availability of $800,000, a reduction in annual debt service of $500,000 per year, and the release of collateralized personal guarantees of the owners.
Served as financial advisors to a closely held leasing company mainly involved in early-stage high-tech companies. Increased failures of borrowers had created liquidity issues and led to difficulty with the company’s lenders. We were able to help cut costs and work with the lender to formulate a longer-term solution.
Served as financial advisor to a steel mill in a Chapter 11 bankruptcy. Difficulties in the industry led to the need to file. We were able to emerge in approximately 8 months while restructuring over $100 million of public bonds, refinancing the company and preserving over 600 jobs.
Served as financial advisor to a large publicly traded retail company in a Chapter 11 bankruptcy. Increased competition and a number of under-performing locations led to a liquidity crisis and Chapter 11 filing. We were able to identify the under-performing locations to be closed and revise the overhead structure to achieve profitability. The case resulted in a sale of the majority of the company through the courts.
Served as financial advisors to a subordinated lender related to their investment in a large manufacturing company. We assisted in helping develop achievable projections and recommending significant cost control strategies as well as helping to revise the capital structure to allow the company to continue to operate.
Served as financial advisors to a large high-tech manufacturer. We helped to negotiate a forbearance agreement with senior lender to allow time to identify under-performing assets. We were able to then help divest these assets to de-lever the company allowing it to focus on its core businesses and return to profitability.
We have served as financial advisors to multiple wood and paper mills both within and outside of bankruptcy. These cases have included, among other things, negotiation of federal guarantees, obtaining union concessions, insurance settlement proceeds and negotiating complex utility and power sharing arrangements.
Served as financial advisor to a manufacturing company supplying the automotive industry. Poor performance and liquidity issues led to our retention. Subsequently, prior management was terminated and a material fraud was discovered. We assisted in running the day-to-day operations, researching the fraud and helping conserve cash and refinance the company. Our efforts resulted in a better-capitalized company and a full recovery in a difficult and competitive industry.
Represented equity and subordinated debt investors in an analysis of current operations of this $250,000,000 distribution business. Assessed current management and their plan, developed suggestions for improvements in operations, controls and strategic direction.
Served as financial advisor in Bankruptcy of manufacturer of plastic components used in the construction industry. Product liability and liquidity issues led to a Chapter 11 filing. The Company emerged with no material discount taken by the trade and original equity kept significantly intact.
Served as financial advisors and interim CFO for publicly traded, high-tech manufacturer of video-conferencing equipment. Increased competition in the industry led to liquidity issues and decreased access to capital. Altman and Company was able to significantly reduce the cost structure, obtain financing and help position the company for a transaction at a greatly increased value to the shareholders.