Case Studies—Manufacturing

 

Medical Instruments Manufacturer

The owner of a precision medical instrument manufacturer engaged an NHB Advisors, Inc. case team to act as Chief Restructuring Officer. Their initial assignment was to stop the negative cash flow, prepare a cash stabilization plan, identify potential strategic buyers and negotiate a sale of the business. Once NHB successfully stabilized the client’s cash flow, the caseteam identified several alternatives for selling the business, and assisted in the sale of the Company as a management buyout.

Optical Equipment Manufacturer

An NHB Advisors, Inc. caseteam served as Financial Advisor to a Fiber Optics Telecommunications Company in Chapter 11. The NHB case team assisted the Company in preparing a Plan of Reorganization, performed due diligence on plan viability, presented the plan to the Creditors Committee and obtained their support. They also brought in $3.5 million in venture capital equity to fund the Plan, ultimately obtaining Plan Confirmation from the Bankruptcy Court.

Circuit Board Equipment Manufacturer

A company manufacturing and distributing machines to imprint circuit board outlines was losing money as a result of the meltdown in the Pacific Rim area and the crash in the semiconductor industry. Unfortunately, management had not reacted quickly enough to the changing conditions. After a situational assessment by NHB Advisors, Inc. Managing Director John Palmer, CTP revealed serious problems, NHB was engaged to oversee the sale of the business to a strategic buyer, which effort is ongoing.

Injection Molding Company

A privately held injection and blow-molding company with annual revenue of over $100 million engaged NHB Advisors, Inc. to provide advisory services after the lender group realized its collateral coverage position had severely declined. Harvey Nachman and his case team performed an assessment within three weeks, and presented their findings and recommendations to the Board of Directors, Shareholders and the senior lender group.

Major changes instituted included replacing a key plant manager, deferring the payment for the main raw material ingredient as a result of formal deferral plans with suppliers, and instituting a cash management system . The firm sought and received seasonal accommodations from its lenders to permit it to optimize its peak spring selling season. NHB was appointed CRO by the client’s Board of Directors, and successfully recruited new personnel for the positions of Chief Information Officer.

Candy Manufacturer

In an example of NHB’s increasing number of engagements by lender groups, Howard Brownstein advised one of the country’s largest lenders in connection with its loans to a candy manufacturer in the Deep South. The borrower had filed bankruptcy without notifying the lender and its main shareholder was seeking to inject new funds in a dramatic move to prime the DIP lender. Since the Debtor lacked a financial advisor charged with providing profitability and cash flow analysis, NHB shared its own analysis with the Debtor, leading the company to decide to shut down unprofitable operations. NHB provided analysis and Bankruptcy Court expert witness testimony that successfully supported the lender’s claims, then assisted the lender with the sale of the business assets.