Multi plant paper processor converting and services company. $100 million in annual sales. $ 50 million in debt. Multiple divisions servicing: office products, print solutions, medical supplies, promotional marketing and technology services provider.
- Multiple services from paper converting to promotional marketing across several sales channels; commercial, industrial and consumer.
- Highly competitive industry with low margins made debt structure overbearing on company.
- Liquidity crisis impinged on working capital requirements.
- Company experienced challenges including labor issues and pricing pressure from customers following the consolidation of three paper conversion and printing companies.
- Challenges resulted in annual operating losses of $2 million – $3 million and the violation of loan covenants.
- MorrisAnderson (MA) retained by debtor to perform comprehensive business plan assessment.
- Analysis conducted by MA team valid business plan while identifying manufacturing and overhead cost savings in excess of $3 million annually.
- Confirmed viability of the debtor’s business plan and projections and developed a corporate viability plan to return the debtor to profitability.
- Excess non-core assets were sold to pay down the debt.
- $156 million bonding facility was put in place to help secure funding commitments from lenders.
- Subordinated bond holders restructured their notes.