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.