International Machine Manufacturer

Phoenix serves as interim CFO and advises an international machine manufacturer through the 363 sale process significantly improving the recovery for the Creditors of the Company.

The Client

The Company was a $60 million international machine and machine tool manufacturer based in Massachusetts. The Company’s primary focus was on the automotive, aviation, and power generation industries.

The Challenge

The Company had endured an operational decline resulting in continued losses over an 18 month+ period. As a result of the Company’s complex international operations, the Company and its lenders were uncertain of the extent of the immediate liquidity requirements of the Company. The Company was requesting a modest increase in its credit lines from its bank.

The Solution

When Phoenix was engaged, it was immediately clear that the basis for the ‘near term’ liquidity issue was a near complete elimination of customers in two of its core markets aviation and power generation. The Company had used historical revenue patterns to predict future revenue; yet its backlog had been nearly depleted. Phoenix immediately went to work with the Company’s management and the Board and collectively determined that a sale through bankruptcy was the only viable option. A Phoenix associate was installed as interim CFO and the Company filed bankruptcy. Phoenix advised the Company through the 363 sale process which resulted in several bids, significantly improving the recovery for the creditors of the Company.

Phoenix Turnaround

Primary Industry

  • Manufacturing

Secondary Industry

  • Machinery

    Primary Services

  • Interim ManagementFinancial ForecastingBankruptcy Advisory