CRO Restructuring/Turnaround & $1 Million Credit Facility
The Client
A 40-year old company and one of the first to specialize in composites processing solutions for the manufacture of cultured marble, solid surface, polymer concrete and more. A leader in design, production methods and applications for the cast polymer industry, the client offers a full range of services and is responsible for the installation of over 1000 manufacturing plant systems worldwide.
The Situation
Due to significant declines in the economy, coupled with cash drains and a complex organizational structure, the company had suffered losses for the past four years and budget projections indicated a continuation of losses. The client was facing termination by their existing lender.
The Solution
Business Capital, placed a CRO specialist with a detached perspective on the hard choices necessary to effect a corporate turnaround, arranged for the current bank loan to be extended and also brought in a new $1 million credit facility. This freed up management to focus on running the business instead of dealing with the fiscal crisis. The corporate structure was streamlined, cash drains were jettisoned, assets were sold to increase liquidity and new goals and objectives were clearly established to ensure the long-term survival of the client.
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