Distressed Sale: Injection Molded Plastics Manufacturer

Client

An Injection Molded Plastics Manufacturer to Tier I automotive and furniture OEM customers had experienced losses for multiple years.

Situation

• Defaulted on senior debt; lender informed debtor of intention to foreclose
• The lender’s collateral value was substantially less than liquidation value
• The owner was tired and combative

Solution

• Engaged BlueWater Partners under pressure as Financial Advisor
• Completed 13-week cash flow and negotiated Forbearance Agreement to create time
• BlueWater Partners’ operations team restructured the manufacturing operations and reporting, resulting in marginally profitable monthly performance
• Once profitable, a sale was only option to satisfy senior debt in full

Result

• Closed on sale to strategic buyer
• Saved all jobs
• Paid off senior debt in full; senior lender became the lender to the buyer
• The buyer assumed all trade debt

Published with client permission