Conway MacKenzie was retained as financial advisor to the financial lender in the Chapter 11 proceeding of a paper mill specializing in uncoated printing and packaging papers and processed chlorine-free (PCF) specialty offset papers for printers and converters. The company filed for Chapter 11 bankruptcy protection due to increased costs of raw materials compounded by a substantial drop in sales. Additionally, the company was faced with lack of payment by one of its larger customers.
Conway MacKenzie worked with management and helped the bank to review the company’s short-term cash forecasts and assessed liquidity constraints, to review the viability of claims against the company in the bankruptcy process and to assess the value of the company under various sale and/or liquidation scenarios.
The company exited Chapter 11 and was sold to a strategic buyer, thus satisfying the bank loan. The company continues to operate as a going concern.