SSG Recognized for its Role in CBW Restructuring
SSG Capital Advisors was recognized by Turnarounds & Workouts, a restructuring industry publication, for the company’s role in the restructuring of Cooper-Booth Wholesale Company (CBW). The publication recognizes the top successful restructuring transactions along with the deal teams annually.
SSG acted as the investment banker to CBW in the placement of an exit financing package which enabled the Company to refinance existing indebtedness and successfully exit Chapter 11 through a Plan of Reorganization.
Pennsylvania-based CBW is one of the top 20 convenience store wholesale distributors in the United States and serves retailers in the Mid-Atlantic region. CBW was pushed into bankruptcy as a result of a cigarette smuggling investigation by federal and New York state agencies involving one of its customers, although the company itself was not accused of any wrongdoing. Unable to access funds for day-to-day operations because its bank account was frozen by a federal seizure warrant, and losing its line of credit and access to its surety bond, CBW was forced to file Chapter 11.
Six months later, CBW settled the seizure warrant investigation with the federal government. CBW was able to secure exit financing of $35 million and the company’s stamp tax bonding program was reinstated, providing a substantial improvement in working capital. CBW successfully exited Chapter 11 with a reorganization plan that paid all creditors in full plus interest. More than 200 jobs were preserved.
“I am pleased that SSG Capital Advisors received recognition for our role in the successful restructuring of Cooper-Booth Wholesale Company, LP along with the teams at Maschmeyer Karalis and Executive Sounding Board Associates,” said J. Scott Victor, managing director, SSG Capital Advisors. “To have CBW chosen by the Beard Group as one of the top 12 restructuring transactions in 2014 is a testament to the efforts of all of the professionals, who approached the transaction with creativity and tenacity to achieve success.”