Gibraltar Metals

CASE DESCRIPTION

  • Company had been purchased out of bankruptcy by a private equity group a year earlier
  • Company was struggling to adapt in a challenging economic environment
  • Prior bank had fatigue and credit line had onerous and expensive terms

  • Disproportionate share of old accounts receivables
  • Inventory in four locations around the country with poor accounting controls
  • Never properly capitalized by PEG
  • Expense not in line with lower sales volume

  • Restructured organization to achieve positive cash flow
  • Instituted cash controls: rolling 13 week cash forecast, collected on old A/R, structured out vendor payments
  • Credible financial projections, accounting controls, revalued inventory
  • Prepared loan package, negotiated covenants and terms in challenging economic and time sensitive environment

  • Increased gross margin by 34%, decreased operating expense by 15% and credit line interest expense by 54%.
  • New line of credit within two months, start to finish
  • Enabled company the time and flexibility to finish turnaround strategies

CASE DETAILS

Company:

Gibraltar Metals


Industry:

Industrial Distribution


Loan Type:

Assest Based


Amount:

$2,600,000


Term:

3 Year