Issue
Profitability and liquidity crisis brought on by steel price movements; profitability issues in key divisions; organizational issues.

Newmarket's Role
An initial assessment led to a comprehensive turnaround plan. Key elements included: aggressive working capital management, refinancing, divestiture of non-core businesses, interim management, divisional sales and marketing. Newmarket was retained to implement key elements of the plan.

Implementation

• Refinancing: Prepared offering materials, solicited of proposals, negotiated and closed $20,000,000 facility.
   
• Divestitures: Identified divisions for divestiture. Valued divisions, prepared offering materials, solicited proposals. Closed or assisted in completion of multiple transactions.
   
• Interim management: Led restructuring effort for major division. Initiatives included inventory management, quality, purchasing, sales and marketing growth, management team development.
   
• Sales and marketing: implemented sales productivity tools, developed website and promotional materials, identified outside representation.

Key Element: Liquidity Management
In the face of a severe cash crisis and an imminent bankruptcy filing, Newmarket recommended an aggressive approach to generating cash to buy time and fund a recovery, thus staving off imminent bankruptcy. Newmarket was successful in creating over $12,000,000 in availability through identification of core business, divestiture of non-core businesses, a comprehensive refinancing based upon Newmarket's turnaround plan, and refocused management/organizational attention.