Equipment Manufacturer Averts Liquidation, Sold as Going-Concern
Implementing Creative Strategies to Maximize Recovery

Client
A mid size manufacturer and supplier of capital equipment in financial distress.

Issue
A combination of operational problems and external market conditions had led to eroding sales and significant financial losses.

Newmarket's Role
Originally retained by the Company to sell its assets, Newmarket ultimately worked with the Company and its bank to fund continuing operations, manage the company, and enhance recovery through a going-concern sale.

Implementation
Over the course of the engagement, Newmarket: 

• Developed a plan that recognized optimum recovery through a going-concern sale and forestalled imminent foreclosure;
   
• Installed interim management to manage operations and cash flow through the ultimate sale;
   
• Maximized the assets by orchestrating a going-concern sale to a strategic buyer.
   

Key Element: A Comprehensive Solution for Maximum Value

• Analytic expertise: Newmarket quickly identified all sources of value and provided an objective view of each possible scenario, including likely recovery value, risks, and probabilities of success.
   
• Operational expertise: Expert interim management focused on completing the backlog, managing for near term cash, and maintaining sales efforts and going-concern value. The operational challenge included managing vendors who were holding key components hostage and extending the bank's facility to allow for build-out. Newmarket focused on critical issues.
   
• Outsider's perspective: Newmarket acted as a credible, independent arbiter between the bank and the client. By implementing a realistic, limited operational solution, a superior return was achieved.
   
• Effective, focused sales approach: Newmarket worked quickly to identify realistic strategic acquirers and manage an expedited transaction. The effectiveness of its approach assured a speedy, high-value result for the Company and its creditors.