Overview of Project
Our client is a specialty food manufacturer and distributor that had made an unsuccessful acquisition that resulted in the company going into bankruptcy. Three other management advisory firms had been engaged by the client to help it emerge from bankruptcy, but all were unsuccessful. Therefore, the company’s secured lender brought in Manchester Companies to help the company emerge from its crisis. Our professionals negotiated a confirmed POR (Plan Of Reorganization) with all constituent parties, presented the POR to the bankruptcy court and obtained approval, then implemented the plan which included restructuring debt and raising new capital. As a result of Manchester’s engagement, our client emerged out of bankruptcy within six months and is now again a growing company.

The Challenge
The company had made an unsuccessful acquisition that drained its cash and led the company to declaring bankruptcy. Three other management advisory firms had been engaged to help the company emerge from bankruptcy, but all three were unsuccessful. The company was floundering and needed help fast.

The Engagement
Manchester Companies was brought into the project by the company’s secured lender. Our firm was engaged to negotiate a confirmed POR, obtain approval from the bankruptcy court, and then implement the POR, with the end goal being the emergence from bankruptcy.

The Solution
Our professionals brought all constituent parties together to negotiate the POR. Then we brought the POR before the bankruptcy judge and obtained approval on behalf of the company, and implemented the plan that included restructuring its debt and securing new financing. We also handled the investment banking transaction that resulted in the company receiving new equity financing from outside investors.

The Impact
As a result of our engagement, our client emerged from bankruptcy with a new capital structure that is providing for its growth.