Acting as CRO through an established industrials company’s complex Chapter 11 reorganization

Key metrics:

Reduced debt by $200M
Raised new capital of $50M

Value levers pulled:

CRO/ Restructuring advisory
Liquidity management
Bankruptcy services
Performance improvement
Supply chain optimization

Picture this...

You’re an established firearms manufacturer serving government and commercial markets with $220M in revenue, $125M in senior secured debt, and $260M in senior notes. But there’s trouble: You’re facing declining sales, a high fixed cost structure, declining EBITDA, operational and liquidity issues, and an inability to fund interest payments to bondholders. You need help.

You turn to Accordion.

We step into the role of CRO to help you turn things around through a Chapter 11 reorganization, supporting your executive team with cash management, bankruptcy preparation, and the development of a five-year projection and business plan. Specifically, we:

Implement lean manufacturing that reduces cycle times by 55%.
Optimize your supply chain, decreasing inventory investment by $2M while increasing new vendor partnerships and fill rates by 350 bps.
Assist with government contracts and manage export/import work with all requirements and approvals.
Help execute a long-term lease for your facility and enter a Memorandum of Understanding with the targeted party.
Engage in a complex negotiation of a consensual Plan of Reorganization that allows you to emerge successfully from bankruptcy.

Your value is enhanced.

You successfully restructure your business in 10 months — from engineering, manufacturing, and procurement to the supply chain through a complete overhaul of operations. You see increased efficiencies after implementing a successful Plan of Reorganization that reduces debt by $200M and raises new capital of $50M.

Enhanced value:

You reap multiple benefits, including:

Reduced debt by $200M
Raised new capital of $50M