The Company is a leading Asian food service distributor to restaurants and other food service customers throughout the Southeast, Pacific and Mountain West regions of the United States.
The Company has 14 distribution centers, strategically located in 9 states across the East and West Coasts of the United States, and a fleet of over 340 refrigerated vehicles
Due to a traumatic external event, demand dropped precipitously for the Company, causing them to furlough a number of employees and reduce operation to 20-30% of the normal run rate.
The syndicated lending group wanted a financial advisor to prepare a 13-week cash flow forecast and determine if the Company would need additional capital to make it though.
FDP worked with management to refine their internally prepared cash flow forecast and validate key assumptions regarding stretched accounts receivable, accounts payable and recent changes in customer credit policies to forecast cash receipts.
Additionally, FDP reviewed the actions undertaken by management to adjust operations and forecast when the Company would get back to positive cash flow.
FDP prepared a forecast which showed the Company would be able to manage through the period of tighter liquidity without additional outside capital by utilizing the existing line of credit, speeding up customer collections and deferring certain expenses.
FDP presented their report and cash flow forecast to the bank group and the bank group decided to not take any additional actions based on the results of the forecast.