Schwab Ready Mix
Ft. Myers, Florida
Ready-mix company with plants in Ohio and Florida. $200 million in annual revenues. $60 million debt.
- Senior secured lender group faced priming DIP financing and a “surprise” Chapter 11 filing.
- Client was in severe liquidity crisis, but Real property and going concern valuations provided by debtor showed lenders to be over secured.
- Senior lenders were shocked by filing and priming DIP plan.
- MorrisAnderson was hired by the Senior lender group to evaluate the DIP filings and prepare a counter proposal.
- Performed a comprehensive financial and business assessment to determine exit strategies and stakeholder returns.
- Assessed business plans, financial projections and operational strategies.
- Business plan found to be inaccurate.
- Going concern and liquidation valuations found to be over stated.
- Lenders were shown to be seriously under collateralized.
- Proposed plan of reorganization was unfeasible.
- Provided expert testimony which won a reversal of the Court’s prior ruling to approve the priming DIP facility.
- 363 sale process and coordination with the Unsecured Creditors’ Committee resulted in 50% improvement in estate value.