MorrisAnderson Cost Reductions Stabilize Company

City Forest

Ladysmith, Wisconsin


Processor of paper products made from recycled materials. $ 250 million in annual revenues. $ 150 million in debt.

  • Company was in violation of all loan covenants following several years of severe operating losses
  • Liquidity crisis was impacting the day-to-day business operations and performance
  • Significant possibility of losing financing due to the company’s under performance and uncertainties in the paper markets.


  • MorrisAnderson (MA) retained by the State of Wisconsin Investment Board (SWIB) to perform business viability assessment.
  • Prepared comprehensive business plan assessment and operational and financial review of core business model and the assumptions driving projections.
  • Identified over $3 million of direct and indirect annual cost reductions.


  • Business plan valid based on analysis conducted by MA team.
  • Cost reductions identified by MA team combined with validation of business plan resolved lender concerns and reestablished banking relationships preserving all existing borrowing.
  • Management able to return company to profitability while meeting all obligations.