A Restructuring & Turnaround Case Study
The independent sponsor owned Company is a Federal Aviation Administration approved maintenance, repair and overhaul (MRO) service provider, who was asked by their bank to pay off their existing loan due to poor performance. When the Federal Government shut down temporarily in 2013, the Company’s primary client was unable to approve invoices for contract work, freezing revenues. Significant delays were created and subsequently, a substantial backlog of work built up. The Company also has a large parts and components inventory for in-house operations and for sale to customers around the globe. At the same time, the decision was made to consolidate their facilities into one new location in a different part of the country, resulting in cost and production inefficiencies during the move.
Accord provided a new senior debt facility that not only paid off the existing loan, but provided working capital liquidity to support anticipated growth and cross-country move.
Operations were able to continue uninterrupted through the financing transition which included the appointment of new senior management. Along with significant prior investment by the sponsor, the Company now has the financial flexibility to catch up on the backlog of business and simultaneously bring in new contracts.