Selling Excess Assets and Restructuring Debt

Hirschfeld Industries

San Angelo, Texas


Steel structure manufacturing and building; built Caesars Palace Spa Tower, Enron Field, Heinz Field, Reliant Stadium, Soldier Field. $225 million in annual revenues. $40 million debt. 900 employees. Firm had not lost money in any year since its inception in 1946.

  • National commercial and industrial construction business slackened along with availability of financing.
  • Commodity steel prices increased dramatically over six month period.
  • Bank group unwilling to advance funds during crisis, vendors were applying surcharges.
  • Backlog analysis showed low/no margin business booked for nine months forward.


  • MorrisAnderson engaged as Chief Restructuring Officer to assess the business and develop a viable business plan.
  • Brought in a new CFO to establish credibility with bank group.
  • Shut down unprofitable business segment, closed unprofitable locations, increased the efficiency of the fabrication shops and quickly changed bidding procedures.


  • Excess non-core assets were sold to pay down the debt.
  • $156 million bonding facility was put in place to help secure funding commitments from lenders.
  • Subordinated bondholders restructured their notes.