Automotive OEM provider of pedals and steering columns. $150 million revenues. $30 million of debt. Private Equity ownership.
- Company was losing $6 million annually heading just as the automotive industry was to be bailed out by the US government.
- Revenues were dropping daily.
- Private Equity ownership group wanted to exit business and stem losses.
- $30 million senior secured debt and $10 million junior secured piece held by owners, believed to be collateralized, so ownershipchose liquidation.
- MorrisAnderson engaged by Private Equity to manage the liquidation process and maximize value.
- MorrisAnderson engineered an “out-of-court” bankruptcy.
- Surcharge implemented resulting in $14 million over five months (U.S. and Sweden).
- Trade creditors ($14 million) organized into an informal committee with counsel.
- Three entities sold; Sweden and China as stock sales, CT plant as asset sale.
- Secured lender paid out 100% in 105 days.
- Junior secured lender received 70%, despite no mortgages on real property.
- Unsecured claimants received 33%.
- Professional fees under 50% of cost of Chapter 11.
- No disruption of service to OEMs on mission critical safety parts.
- Net Value Recovery $10 million more than a Chapter 11.