MorrisAnderson Company Restructuring Paves Way for Refinancing


Annual Sales


in Debt

Werthan Packaging, White House Tennessee


Privately held manufacturer of multi-wall paper bags for the pet food industry. Annual sales of $45 million. $15 million debt. Approximately 160 salaried and hourly employees.

  • The Company experienced liquidity issues and operational challenges as a result of severe damage to one of the Company’s printing presses and contract renegotiations with a large customer
  • As a result, the Company embarked upon a comprehensive turnaround plan to restore financial performance but lost the supportofits senior lender during the process
  • Senior lender was fatigued as covenants were violated and Company could not produce a comprehensive restructuring plan satisfactory to the lender under the timeline that the senior lender required
  • Without senior lender support, the Company struggled to fully implement its turnaround plan and was faced with an immediate need for liquidity and capital structure modification


  • The Company hired MorrisAnderson to review prior restructuring initiatives, vet current business plan assumptions and assist Company in assembling a comprehensive restructuring plan to present to the lenders and potential financial partners
  • Additionally, MorrisAnderson assisted the Company in developing a rolling 13 week cash flow reporting package to assist in managing liquidity and evaluating cash flow
  • MorrisAnderson worked closely with the Company to evaluate alternative restructuring options including the refinancing of the Company’s debt, raising new debt capital and a sale of parts or all of the Company’s assets


  • Company successfully developed a comprehensive restructuring plan, including both sale and refinance scenarios
  • Senior lender supported the Company’s restructuring efforts in the short term and provided additional liquidity in order to bridge the Company to a refinancing
  • The Company was able to secure refinancing that paid off existing lenders 100% and gave the Company much needed liquidity to continue executing its restructuring plan and provide future growth capital