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Case Studies Heavy Industry, Steel & Plastics

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Maximizing Results

The Engagement

Conway MacKenzie worked with a manufacturer and distributor of hot rolled, cold reduced, tempered steel sheets and laser cut components. The company’s steel business converts steel coils into sheets and sells the steel sheets by bundle to Original Equipment Manufacturers. The company’s laser business utilizes proprietary technology to provide superior quality laser cut parts customized to customer design specifications. The company was experiencing distress.

Our Role

Conway MacKenzie acted as financial advisor and advised the company: (1) as to disposition of non-core assets and consolidation of idling and under-utilized facilities in order to improve liquidity, (2) in negotiations with existing lenders to ensure adequate financing to facilitate the execution of its plan, (3) in the identification of alternative sources of liquidity, and (4) in negotiating the sale of non-core sheet equipment.

The Result

This transaction ultimately yielded a 100% repayment to the company’s lenders and the restructuring of the laser cutting business.

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Forecasting For the Future

The Engagement

Conway MacKenzie worked with a $180 million full-service scrap metal recycling business. The company had $50 million of debt outstanding and was seeking an additional $30 million capital lease financing to acquire equipment.

Our Role

Conway MacKenzie was engaged by the company to assist with cash forecasting, develop a financial model to project financial impact of equipment that was being purchased, and assist with lender negotiations.

The Result

Conway MacKenzie worked with the company to manage cash, free up revolver availability and forecast the impact of the new equipment, and assisted management to better manage scrap inventory and to improve internal controls and pricing.

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Building a Strong Foundation

The Engagement

Conway MacKenzie worked with the fourth largest flat-rolled integrated steel maker in the United States with over $3 billion in annual sales and over 8 million tons of steelmaking capacity during its Chapter 11 proceedings. The primary industrial markets served by the company included the construction, appliance, container, converter, service center, pipe and tubing and automotive markets.

Our Role

In compliance with its DIP agreement the company retained a Conway Mackenzie professional as its Chief Restructuring Officer to guide it through the Chapter 11 process. The DIP agreement also contained various sale process milestones and deadlines which required the company to, among other things, sell its fixed assets.

The Result

Conway MacKenzie has been instrumental in navigating the company through its complex bankruptcy and expedited sale process. Through the restructuring process hundreds of millions of dollars of working capital have been realized and over $100 million of fixed assets sales have been completed.

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