Textile Producer

Phoenix serves as financial advisor in arranging and negotiating the D.I.P. and senior financing for a textile producer’s emergence from Chapter 11 Bankruptcy.

The Client

Our client was a $350 million publicly held International Manufacturer of Commercial Fabric including automobile airbag fabric.

The Challenge

Due to unprofitable acquisitions outside of its core market and cash flow difficulties, the Company violated certain financial covenants. It was in a liquidity crisis, as many vendors were demanding COD payment and it was unable to source certain raw materials. Because of its weakened financial situation, the Company’s sales started to suffer.

The Solution

Phoenix conducted an operational assessment and implemented a restructuring plan. Over the period of a few weeks, Phoenix negotiated a financial restructuring which included a “pre-arranged bankruptcy.” Phoenix’s plan included the sale of certain operating entities, a $25 million DIP financing package, and aggressive new sales directives. Finally Phoenix arranged for another $30 million in financing that enabled the Company to emerge from bankruptcy, well capitalized and positioned for profitability.

Phoenix Turnaround

Primary Industry

  • Manufacturing

Secondary Industry

  • Automotive

    Primary Services

  • Bankruptcy Advisory