Estudios de caso

Estabilización de un distribuidor de productos para calefacción

J.S. Held adquiere GLI Advisors para fortalecer sus servicios de apoyo a proyectos de construcción en el oeste de EE. UU. y Hawái

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La situación

Distributor of fuel and heating products throughout Ohio, Kentucky, and Indiana. Electricity supplier to Ohio residents. $800 million in annual sales. Annual volume: 350 million gallons of petroleum and 345 million kilowatt-hours of electricity. $50 million bank debt.

  • Oil prices plummeted to record lows due to a global supply surplus and other macroeconomic reasons.
  • The company purchased commodity contracts to hedge supply contracts with its customers. The significant decline in oil prices triggered margin calls of $9 million at the company.
  • The $9 million of cash payments resulted in non-compliance with their Financing Agreement’s Minimum Availability Covenant and depleted most of the company’s line of credit availability and liquidity.
  • The company needed a plan to absorb and fund its operating expenses and cash requirements while complying with its existing credit facilities.

Nuestro asesoramiento

Our experts were engaged to assess short-term liquidity and longer-term viability, explore all strategic options, assess the company’s hedging contracts and existing hedging practices, and recommend changes to their policies and procedures.

  • We provided the analysis (daily, weekly, and monthly) to prepare and negotiate three separate Forbearance Agreements. The Forbearances covered 6 months and initially required a $6 million over-advance, $1 million Minimum Availability Covenant, and $1 million subordinated debt.
  • We also prepared a documented procedure for preparing the company’s liquidity and borrowing base forecasts, along with supporting documents.
  • The financial forecasts were expanded to include monthly income statements, balance sheets, and cash flows.
  • The financial forecasts provided by our team and the resulting Forbearance Agreements provided stakeholders with the necessary time and information to initiate thoroughly analyzed business decisions.
  • Management pursued a multi-path strategy including a) company sale in whole or in part, b) refinancing with the Agent Bank, or c) refinancing with another lender. Ultimately, management decided not to pursue a sale, and the Agent bank decided to exit the credit. However, a Participant Bank was interested in financing 100% of the credit. The Participant Bank initiated due diligence with their team, working closely with our experts and the company.
  • The Agent bank was refinanced and paid out 100% by the Participant Bank. Closing was achieved within 60 days of initiating due diligence and prior to year-end.
  • The company now has a robust financial forecasting system and a new hedging policy with tighter procedures and increased management oversight.

Contacto clave:

Mike Boudreau, CPA, CTP, CFF 
Director 
Práctica de Asesoría Estratégica
+1 248 227 0978 
[email protected] 

Áreas de práctica relacionadas

> Gestión de liquidez 
Para las empresas en dificultades o que experimentan un rápido crecimiento, garantizar un flujo de efectivo suficiente para respaldar las operaciones requiere un enfoque metódico de la gestión de la liquidez marcado por el aporte de varios departamentos, la comunicación entre los distintos componentes, el establecimiento de prioridades y la negociación.

 

> Validación del plan de negocios 
Ofrecemos soluciones integradas para empresas en dificultades o insolventes que maximizan la recuperación, mitigan riesgos y restauran el valor de la organización. Nuestros expertos son contratados para ayudar a las organizaciones en crisis a estabilizar sus operaciones, proteger los intereses de las partes involucradas y ejecutar estrategias de recuperación. Adoptamos un enfoque operativo que va más allá del balance general para minimizar un mayor deterioro y construir un camino hacia un crecimiento sostenible. Nuestro equipo ofrece orientación práctica y análisis independiente a prestamistas, acreedores, asesores legales, equipos ejecutivos, juntas directivas e inversores.

Nuestros expertos