Case Studies Transportation & Logistics

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Driving Forward Through Chapter 11

The Engagement

A Conway MacKenzie professional was engaged by a freight transportation company as financial advisor to the Unsecured Creditors Committee (UCC). The company was one of the largest long-haul freight transportation company in the U.S.

Our Role

The Conway MacKenzie professional assisted the UCC with the following:

  • Analysis of 13-week and 26-week cash flow and liquidity forecasts
  • Review of operational reports submitted by the Debtor
  • Oversight and review of sale process for the Debtor and certain of its divisions
  • Identification of certain cost reduction initiatives
  • Preparation of income statement and balance sheet projections
  • Analysis and review of company claims and convenience class claims
  • Negotiation with the company on claims and other various matters
  • Management of wind-down process of the shell company after asset sales

The Result

As a result of the professional’s engagement the company effectively implemented and executed certain cost reduction initiatives, and maximized value for the estate by leading the sale of various divisions to third parties and driving increased sale proceeds throughout Chapter 11 process.

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Gearing Up For the Long Haul

The Engagement

The nation’s largest new car hauler filed for protection under chapter 11 of the U.S. Bankruptcy Code to address several financial issues plaguing stakeholder value. Such issues included but were not limited to excessive leverage, limited liquidity, burdening labor agreements and unprofitable customer contracts.

Our Role

Conway MacKenzie professionals led a team hired by the company as operational and business advisor to provide the company with general business improvement and operational restructuring advice during its bankruptcy filing, which included:

  • Monitoring daily cash flow, performing an assessment provided to the DIP Lenders and conducting regularly scheduled conference calls with the DIP Lenders and company management to provide real-time information and assurance
  • Reviewing the development of the company’s detailed operating plan including identifying $15 million in liquidity events and supporting management’s decision to file the 1113(e) which resulted in an estimated $4 million in savings
  • Assisting in negotiations for an extension of a forbearance agreement with the DIP Lenders and subsequently the company’s “Fourth Amendment” and “Fifth Amendment” to its DIP facility; which first provided a $5 million protective over-advance and then the company’s DIP Term Loan C of $30 million
  • Developing several key recommendations related to critical issues plaguing the company’s operations across the following areas: dispatch operations, equipment replacement, owner operators, union contract, terminal operations, pricing model, and fuel management.

The Result

Conway MacKenzie helped the company to implement its restructuring plan.

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On the Road to Financial Turnaround

The Engagement

Conway MacKenzie was engaged by a $120 million LTL motor freight carrier, warehousing and environmental services company based to perform a viability assessment and develop a comprehensive financial management program. The company operates out of approximately ten facilities and was experiencing significant revenue and profitability decline resulting in short-term liquidity issues.

Our Role

The Conway MacKenzie project team assisted the company with the following:

  • Development of a 13-week short term cash flow/liquidity forecast
  • Development of a monthly profit and loss, balance sheet and cash flow reporting package for monitoring and managing financial performance
  • Identification and implementation of certain cost reduction initiatives
  • Negotiations with its Senior Lender and trade vendors

The Result

As a result of Conway MacKenzie’s engagement the company effectively:

  • Communicated to its senior lender the company’s recent improvements in lowering costs and improved profit performance
  • Implemented a financial management system that improved forecast accuracy and cash management
  • Negotiated a new credit facility with the existing lender under more favorable terms and returned the company to its normal operating status
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