ENGAGEMENT DESCRIPTION


Manufacturer of Precision Metal Parts




Situation Encountered Upon Engagement

The company had lost its major customer, resulting in a sales decline from $13.3 million in 2008 to an annualized rate of $5.8 million in 2010, with operating income dropping from $2.1 million in 2008 to an annualized rate of negative $1.8 million in 2010. Sues & Angart was hired in June 2010. We found the company had no cash, less than $100 thousand available on its line of credit and negative cash flow of about $170 thousand per month. The company was less than one month from being unable to obtain raw materials or make payroll, and headed for liquidation.



Major Actions Taken by Sues & Angart

1.  Developed and implemented a cash preservation plan, including obtaining a standstill on debt service payments with the company‚Äôs secured lender, equipment

     lessors and landlord.

2.  Implemented the bankruptcy model with trade creditors on an out-of-court basis.

3.  Implemented headcount and other cost reductions.

4.  Conducted a sale process and implemented a secured party sale.



Key Results Obtained by Sues & Angart

1.  Improved cash flow $500K, allowing the company to operate to complete the sale process.

2.  Completed the sale of the business as a going concern in 60 days.

3.  Obtained a much more successful outcome for all creditors than would have occurred in liquidation.

4.  Saved 65 jobs.


Sues and Angart