Phoenix serves as financial advisor and implements a revised business plan for an aviation parts distributor.
Phoenix’s client was a privately held $20 million Aviation Parts Distributor and Airplane Engine Maintenance manager based in PA.
The Company’s credit facility was about to expire in a post 9/11 lending market that was inhospitable to aviation exposure. Due to industry exposure concerns and the Company’s relative risk, the Company’s lender sold its loan in the secondary market at a discount. As a result, the new lender was motivated to force a very rapid repayment in order to maximize its return. The Company was in a very difficult situation due to personal guarantees that had been signed by several of the owners.
Phoenix developed and implemented a strategy to have a vendor, whose fortunes were closely tied to the Company’s, guarantee the repayment of the loan based on certain business level requirements. This provided comfort to the lender, stopped action against the guarantors, and allowed the Company to implement a revised business plan.
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Secondary Industry
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