Sold Companies as Going Concern After Their Shut Down
200M
Annual Sales
42M
in Debt
Ingersoll International, Rockford Illinois
Challenge
Custom machine toolmaker. $200 million sales. $42 million debt.
- Company operating in Chapter 11, out of cash
- $42 million in senior debt, assessment by banks was $20 million under water, $30 million owed to trade creditors, $34 millionin underfunded pensions
- Company faced shut down and last of two potential buyers just bowed out of negotiations
- Underfunded pension
Solution
- MorrisAnderson engaged as financial advisor to sell assets and liquidate Company
- Development of an operating plan that was cash positive and preserved the sale option and avoided immediate liquidation
- Negotiated with customers to fund build out and maintain going concern value of business
Results
- Stock of German subsidiary sold for $45 million paying off senior debt
- Structured sales of three operating units raised $24.6 million which funded the PBGC $20 million and provided a $3 million (10%) payout to the unsecured creditors
- $40 million increase over expectations at the time of the filing