Successful Turnaround, Plan of Reorganization and Refinancing

International Technical Coatings (ITC)

Phoenix, Arizona

Challenge

Metal racking manufacturer for warehouses with 2 plants. $60 million revenue. $25 million debt.


  • Company had significant cost issues with new plant start-up that exhausted liquidity and created bank covenant defaults
  • Owner was in legal battle with his ex-partner who he recently had bought out
  • Owner had used significant cash resources to fund other business ventures
  • Financial function was a mess, reporting months behind, poor control of cash, and no forward planning
  • Communications with bank had totally broken down
  • Bank wanted to exit loan and company was forced to file an unplanned Chapter 11

Solution

  • MorrisAnderson (MA) engaged as Financial Advisor and subsequently as Interim CFO
  • MA got control of cash, created forward cash plan and re-opened proactive communications with bank
  • MA rebuilt financial processes for timely reporting, forward planning and cost management discipline
  • MA created Plan of Reorganization structure that was realistic
  • MA re-opened communications between owner and his partner

Results

  • Company profitability improved from break even to $8 million/year EBITDA
  • MA secured $33 million in exit financing from a new lender and restructured $7 million of existing debt
  • Company recruited a new CFO
  • Company exited Chapter 11 with strong earnings and a capital structure that was appropriate

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