A distressed radiator component manufacturer based in Detroit Michigan with a primary manufacturing facility in Mexico became distressed as a result of delayed customer contracts and reduced demand in the 3rd party repair sector, which resulted in the company relying on high interest debt to survive.
Through Second Wind Consultant’s Article 9 restructuring of the company, Gulf Coast Bank was able to exit at par, while avoiding a formal liquidation. The distressed credit was refinanced by Breakout Capital.
Breakout Capital was able to take a first position lien on previously distressed assets, which were resolved of all junior liabilities through the out of court process. The business operation was transitioned to a new operating entity with a clean balance sheet, preserving its jobs and approximately $12 million in annual revenue.
