Restructuring of a Privately-Owned Beef Processing Facility

Corporate Finance & Restructuring

April 7, 2014

The FTI Consulting team was approached to by the largest, privately-owned beef processing facility in the Southeast region of the U.S. to assist with a restructuring after the Company was found to be in default with it senior lenders and was attempting to refinance its debt.

Situation

  • The Company’s credit facility was overdrawn, and thus did not have sufficient liquidity to meet its working capital requirements.
  • The Company was in default with its senior lenders and was attempting to refinance its debt.

FTI Consulting’s Role

  • FTI Consulting professionals undertook an interim Chief Restructuring Officer (CRO) position at the Company. This role included managing daily cash, approval of disbursements, and development of restructuring plans and strategic alternatives to maximize the enterprise value of the Company.
  • Our team managed the accounts payable and all disbursements to maximize the Company’s liquidity.
  • Working with management, we assessed the strategies of the Company as well as discussed the impact of expanding to new product lines and facilities.
  • We developed a ‘bottoms-up’ annual Business Plan and prepared a fully integrated 13-week cash flow analysis, including a forecast of the borrowing base projection along with further analysis required by the Company.
  • Acted as a liaison between the Company and its senior lenders, including development of the daily borrowing base and daily funding requests.
  • Provided assistance in obtaining replacement financing for the Company’s revolver.

More Info

Share this page