Lampert Capital Markets Case Studies
Debt Restructuring
  • Background

Lampert Debt Advisors is pleased to announce the successful debt restructuring and recapitalization of a 100 year old, family-owned manufacturer and distributor of high quality building materials.

Since its peak in 2005, the building materials industry has significantly contracted in concert with declines in the residential and commercial construction markets. Although the sector has experienced a modest recovery in 2012 as evidenced by leading industry indices, industry activity remains far below historic levels, resulting in continuing pressure on building material suppliers.

  • Financing Challenge

The combination of weak demand and additional debt incurred to expand and modernize production facilities impaired the Company's solvency and constrained its ability to service its outstanding financial obligations.

  • An overleveraged balance sheet with approximately $38MM of debt
  • Uncertainty surrounding the timing of industry rebound
  • Burdensome servicing requirements that strained the Company's resources
  • Cash flow inadequate to service obligations on a timely basis
  • Solution

Successfully negotiated debt restructuring agreements with Lenders to avoid Bankruptcy alternative

  • Reduced the Company's debt by almost 70%
  • Right-sized debt service requirements to match projected level of operations;

enhanced through a non-amortizing TLB

  • Capital structure conducive to raising new equity investment
  • Result

Avoided bankruptcy and maintained a treasured family legacy that positions the Company for growth unimpeded by its capital structure

  • Modest equity investment from original owners
  • Maintenance of majority ownership by families
  • Capitalization conducive to future refinancing
  • Streamlined lender group
  • Lender recovery in excess of bankruptcy, liquidation and 363 alternatives
  • Elimination of the adverse effects of financial stress on the Company, its ownership,

management, employees and the communities in which it operates