Interim Management Turnaround and Successful 363 Sale

Victor Plastics

North Liberty, Iowa

Challenge

Injection molder primarily for appliance industry. $60 million sales. $25 million debt.


  • When Maytag was purchased by Whirlpool Victor, a major supplier to Maytag, lost 40% of its annual revenue.
  • Vendors were surcharging current deliveries to pay down past due amounts.
  • $25 million of senior and junior debt was at risk and the lenders wanted to liquidate.
  • $2 million was needed to consolidate plants and get the company viable at a lower run rate of sales.

Solution

  • MorrisAnderson was brought in to pursue a 12-week liquidation plan within a Chapter 11.
  • MorrisAnderson believed a going concern sale would generate more value than a liquidation.
  • Concurrently, MorrisAnderson also marketed the company on a dual track section §363 process.
  • The money losing Mississippi location was closed and customers were surcharged to raise margins.

Results

  • Because of the changes implemented, the Company became cash flow positive.
  • Eleven prospective buyers emerged.
  • In a four month period as part of a liquidation process, the Company was sold at 5.5 times projected EBITDA.

Daniel F. Dooley

Dan Dooley, CTP, is a Principal and CEO at MorrisAnderson based out of Chicago. He has a strong national reputation in crisis management, operations improvement, debt refinancing/restructuring and C-level positions. He is a frequent speaker at industry conferences and a regular author for industry periodicals. Dan has served on the Board of Directors of both… Read More