Conway MacKenzie was engaged as financial advisor to the Unsecured Creditors’ Committee (the “Committee”) during the bankruptcy of a producer, supplier and distributor of ready-mix concrete, concrete block, cement and related supplies to commercial, governmental and residential contractors. The company faced a material decline in revenues due to the collapse of the construction sector.
The Conway MacKenzie team provided targeted analyses for the Committee during the Priming DIP hearings, the sale procedures and auction process, and critical support to the parties interested in the purchase of the company’s assets.
Conway MacKenzie’s efforts provided critical support to the interested parties vying for the purchase of the company’s assets.
Conway MacKenzie served as Chief Restructuring Officer of a $90 million site development contractor based in the southeast U.S. The company was purchased by a private equity firm at the height of the residential construction boom. With approximately 90% of its business focused on the residential construction market, the company recognized it was over-leveraged as a result of its sale and was struggling with a substantially depressed backlog.
Conway MacKenzie assisted the company in developing a restructuring plan which would downsize the business to a $50 million a year contractor focused predominantly on commercial and municipal work. This downsizing would require a $45 million debt to equity conversion and a $10 million working capital infusion to secure bonding capacity.
Upon deliberation by the private equity sponsor and mezzanine lenders, the decision was made to wind-down the operations and divest approximately 600 pieces of various earthmoving and transportation equipment to satisfy senior secured creditors. The wind-down plan was conducted out of court and resulted in a 95% recovery to the senior lenders and secured creditors through the release of letters of credit, completion of projects, tax and workers comp refunds, sale of equipment and asphalt plants.