Non-Ferrous Metals & Chemicals

Phoenix successfully completes the sales transaction of a metals & chemical manufacturer with the senior secured creditor’s loan, interest, and fees all paid-in-full.

The Client

The Company was a privately held company that manufactured and marketed Non-Ferrous Metals and Chemicals to various industries in the United States and worldwide. At its high point, the Company grew to approximately $150,000,000 in revenue with more than 100 employees.

The Challenge

The Company’s single largest metal product was copper, which the Company manufactured into a number of different configurations. The price of copper was extremely volatile and pressures from the world economy and the difficulty in fixing a price for copper made it difficult for the Company to compete with foreign copper manufacturers. The Company began searching for sources of capital to buttress their operations and pursue their business plan. However, the general economic downturn and the state of capital markets adversely affected the Company and impaired their ability to obtain necessary additional capital. The Company filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code.

The Solution

Phoenix Management Services was engaged by the Company at the request of it’s senior secured creditor to perform the following:

  • Provide analysis of the Company budget and cash flow projections to assist the senior secured creditor’s decision to provide DIP financing
  • Evaluate the offer from the potential buyer (one of the Company’s vendors) including risks associated with offer contingencies
  • Monitor the 363 auction process
  • Identify potential risks that may be presented by the unsecured creditors committee
  • Evaluate the senior secured creditor’s risk should the sale transaction not materialize

Phoenix worked with all levels of Company management and interacted with the controller at the manufacturing facility on a daily basis. Phoenix improved the Company’s inventory reporting to include daily updates as it was such a large and fluid component of the collateral base. Phoenix also developed daily reporting packages and metrics that detailed each component of the Company’s collateral as well as other deliverables so that Phoenix and the senior secured creditor had the most up-to-date information on the daily position of their collateral and also their position relative to the ‘stalking horse’ offer. As a result of Phoenix’s efforts, the sale transaction was completed with the senior secured creditor’s loan, interest, and fees all paid-in-full.

Phoenix Turnaround

Primary Industry

  • Manufacturing

Secondary Industry

  • Chemicals

    Primary Services

  • Business / Operational AssessmentsFinancial ForecastingStrategic AdvisoryBankruptcy Advisory