Globe Metal

Division: Phoenix Capital Resources, Phoenix Management Services


Globe Metal was a $120 million metal foundry in Beverly, Ohio that specializes in silicon alloys.


Diminishing cash balances and poor financial performance had caused the Company to be in default of its credit agreements. While the Company was attempting to line up replacement financing, its debt was purchased by a distressed debt buyer. The Company had filed for bankruptcy, but lacked the resources and understanding of the process to operate effectively.


Phoenix Management Services was hired as Financial Advisor. Phoenix’s analysis uncovered opportunities to raise prices on high demand items, while discontinuing production of low margin products. Phoenix identified opportunities to continue to service Globe’s customers while reducing the number of plants operated. The mothballing of Globe’s plant, which represented significant overall industry capacity, resulted in the ability to further increase prices. These changes allowed the Company to continue to operate during a period of overall industry rebound. Phoenix advised the Company through a successful emergence from bankruptcy.