The Company is a million manufacturer of sheet metal products including store fixtures, truck interiors and products for the electronics and computer industries, as well as the manufacturer of wood-based retail store fixtures and furniture, with two plants in the Midwest.

The Company experienced a dramatic decrease in volume, stemming from a major customer. Fort Dearborn was engaged to improve profitability and assess the Company’s strategic options.

FDP identified and initiated several profit improvement and cost reduction measures to stabilize the business, including price increases, expense reductions and a reduction in force.  These actions resulted in the Company generating positive income from operations.

Fort Dearborn assessed the viability of the business, preparing multiple-case scenario analyses, and determined that a sale/wind down strategy would provide the most benefit to all stakeholders. This effort allowed ownership to make a timely decision that ultimately led to maximizing value, as the Company was marketed for sale while the Company was still operating.

FDP initiated an Assignment for the Benefit of Creditors (ABC) and assisted the assignee with the wind down of the estate and day-to-day operations after the departure of the President, CEO and Operations Manager.  Fort Dearborn also prepared communications and negotiated with creditors in order to avoid bankruptcy and minimize wind down costs.

FDP assisted with the auction of certain manufacturing equipment.

FDP was the Company’s financial advisor and assisted in all aspects of the expedited sale process, including preparing the information memorandum and related financial analyses.

Successfully avoided bankruptcy filing and maximized the return to all creditors:

–Senior secured lender paid-in-full;

–Eliminated ownership liabilities to the Company and to creditors; and

–Negotiated settlement with multiple equipment lessors, improving value to all stakeholders.