Safety Components International

Division: Phoenix Capital Resources, Phoenix Management Services


Safety Components International was a $350 million publicly held international manufacturer of commercial fabric including automobile airbag fabric.


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, SCI’s sales started to suffer.


Phoenix Management Services 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 SCI to emerge from bankruptcy, well capitalized and positioned for profitability.