San Angelo, Texas
Steel structure manufacturing and building; built Caesars Palace Spa Tower, Enron Field, Heinz Field, Reliant Stadium, Soldier Field. $225 million in annual revenues. $40 million debt. 900 employees. Firm had not lost money in any year since its inception in 1946.
- National commercial and industrial construction business slackened along with availability of financing.
- Commodity steel prices increased dramatically over six month period.
- Bank group unwilling to advance funds during crisis, vendors were applying surcharges.
- Backlog analysis showed low/no margin business booked for nine months forward.
- MorrisAnderson engaged as Chief Restructuring Officer to assess the business and develop a viable business plan.
- Brought in a new CFO to establish credibility with bank group.
- Shut down unprofitable business segment, closed unprofitable locations, increased the efficiency of the fabrication shops and quickly changed bidding procedures.
- Excess non-core assets were sold to pay down the debt.
- $156 million bonding facility was put in place to help secure funding commitments from lenders.
- Subordinated bondholders restructured their notes.