Sold Companies as Going Concern After Their Shut Down

Ingersoll International

Rockford, Illinois

Challenge

Custom machine toolmaker. $200 million sales. $42 million debt.


  • Company operating in Chapter 11, out of cash
  • $42 million in senior debt, assessment by banks was $20 million under water, $30 million owed to trade creditors, $34 millionin underfunded pensions
  • Company faced shut down and last of two potential buyers just bowed out of negotiations
  • Underfunded pension

Solution

  • MorrisAnderson engaged as financial advisor to sell assets and liquidate Company
  • Development of an operating plan that was cash positive and preserved the sale option and avoided immediate liquidation
  • Negotiated with customers to fund build out and maintain going concern value of business

Results

  • Stock of German subsidiary sold for $45 million paying off senior debt
  • Structured sales of three operating units raised $24.6 million which funded the PBGC $20 million and provided a $3 million (10%) payout to the unsecured creditors
  • $40 million increase over expectations at the time of the filing

Brian Schroeder

Brian Schroeder, CPA, is an Associate Director at MorrisAnderson. Brian brings an extensive background in the accounting, private equity, and wealth management industries and uses that background as a basis to structure practical solutions through comprehensive financial analysis. Prior to joining MorrisAnderson, Brian was a private wealth analyst for BMO Private Bank, an industry leader… Read More