Metal Foundry

Phoenix serves as the exclusive financial advisor for the debtor in possession in conjunction with the bankruptcy, operational turnaround, and the placement of $16 million in exit financing for a metal foundry.

The Client

The Company was a $120 million Metal Foundry in Ohio that specialized in silicon alloys.

The Challenge

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.

The Solution

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 the Company’s customers while reducing the number of plants operated. The mothballing of the Company’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.

Phoenix Investment Banking

Primary Industry

  • Manufacturing

Secondary Industry

  • Metal Products

    Primary Services

  • Turnaround ManagementBusiness / Operational AssessmentsFinancial ForecastingBankruptcy Advisory