Chief Restructuring Officer: Precision Machined Products Manufacturer

Client

A Precision Machined Products Manufacturer serving automotive and heavy truck OEM and Tier I customers had experienced several years of losses.

Situation

• Three manufacturing facilities in Indiana, Kentucky and Mexico, headquarters in Michigan
• Defaulted on senior debt and lender blocked availability
• Projected $3 million cash shortfall in two weeks; $850,000 borrowing base certificate (BBC) reconciliation issue
• Private equity owner unsuccessfully tried to hand keys to senior lender

Solution

• Board of directors hired BlueWater Partners as CRO to liquidate or sell the company as a “going concern”
• Completed 13-week cash flow, corrected BBC issue in two weeks and contacted four largest customers
• Executed Accommodation Agreement, establishing sale process and other milestones
• Shared plan with all employees, implemented productivity/quality improvements in all three facilities, and substantially reduced HQ staff

Result

• Closed on Section 363 sale to a strategic buyer
• Saved over 200 at risk jobs
• Paid off senior lender in full

Published with client permission