The Company is a tin mill service center, fabricator and decorator to the canned goods industry
The Company made significant capital investment in long-term strategic assets, financed largely with term debt; sales declined 50% with the economic downturn causing significant operating losses.
FDP was initially engaged to assist the Company with an assessment of its strategic alternatives, together with the preparation of an operating plan and forecast.
–Appointed as interim CFO, after identifying several operational and internal control shortcomings;
–Provided and implemented recommended solutions to customer pricing and inventory purchasing strategies; and
–Assisted the Company in recruiting a permanent CFO, after returning the Company to profitability.
Several years later, the Company embarked on a capital expansion plan that was mismanaged, leading to a severe liquidity crisis which resulted in the Company’s failure to pay key vendors, as well as the loss of major customers.
FDP was retained by the Board as interim CEO, to assess its alternatives:
–Oversaw marketing of the business to strategic buyers; however, rapidly declining sales, and an inability to buy product, made a going concern sale impossible; and
–Developed and implemented a bank supported wind-down plan
Maximized the recovery on inventory by converting raw materials to finished goods;
Led AR collection efforts; and
Generated highly competitive bidding on major production equipment lines
–First FDP engagement was the interim CFO role, which was critical to return the Company to profitability; and
–Negotiated new long-term financing agreement with current lender after a successful turnaround.
–During interim CEO role, FDP quickly determined that the sale of the Company as a going concern was not practical, and immediately a developed plan to maximize the value of the assets; and
–Generated recovery of approximately 50% to unsecured creditors, after banks were made whole, during the wind-down.