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Engineering & Construction

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The Engineering & Construction industry was one of the hardest hit during the global recession. While 2008 marked the peak of the construction boom in North America, during 2009 most contractors spent their resources working off existing backlog. With an improving economy and low interest rate environment for the last couple of years, the industry has begun to recover, although challenges remain.

Our Engineering & Construction Industry group understands the challenges and opportunities faced by contractors. Our seasoned team of professionals adopts a “can do” attitude and can assist in developing and executing a proactive strategy for distressed contractors and their constituents. We also specialize in helping contractors who are looking to raise capital to expand, those who are looking for a buyer, as well as those looking to acquire assets themselves.

Conway MacKenzie has extensive experience working with general contractors, subcontractors, suppliers, lenders, sureties, government agencies, trade unions and project owners across all major specialties servicing the following end markets:

  • Commercial
  • Energy
  • Government
  • Industrial
  • Power
  • Residential
  • Transportation
  • Utilities
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View Select Case Studies
Downsizing to Thrive

The Engagement

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.

Our Role

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.

The Result

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.

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