Conway MacKenzie worked for a manufacturer of steel components, including steel bars. The company had multiple plants with over $150 million of senior secured debt with multiple member bank groups. The company had a significant increase in debt to support acquisition and capital spending immediately prior to significant industry downturn.
Conway MacKenzie was engaged by the bank group which initially asked to have them perform a viability analysis. Conway MacKenzie conducted management interviews, plant visits and operational reviews, performed industry research and analysis, analyzed actions taken by management to improve profitability and cash flows, reviewed and analyzed management projections and prepared breakeven analyses.
Together with bank group, Conway MacKenzie negotiated an out-of-court restructuring with the company and its advisors. At closing, the bank group converted approximately $70 million of senior debt to subordinated debt, preferred stock and warrants.