Interim CEO and Chief Restructuring Officer for Middle Market Company

Background: An international capital equipment and tooling company had experienced revenue declines from $60+ million to less than $20 million.  Revenues recovered to a  $30 million rate with EBITDA of about $1.5 Million, yet it needed a $2.5+ million capital infusion.  Prior to infusing the capital Robert Deprez was appointed as the Chief Restructuring Officer and Interim CEO to revitalize company, build a new management team and guide the company through an out of court restructuring.

Summary of Key Action Taken: Over a 5-month period as the CRO and Interim CEO, the following major actions were taken:

  • Rebuilt management team replacing Director of Purchasing and VP of Manufacturing.
  • Eliminated the CFO, VP Machine Assembly and VP marketing by promoting from within
  • Established senior leadership team  to lead company through transition period
  • Established new flash reports and operating metrics used to manage the company
  • Established several cross functional teams to address major operating issues including:
    • Production Scheduling
    • Field Quality and Warranty Issues Team
    • Engineering APQP implementation
    • AR, Inventory & Working Capital Reductions
    • SGA Cost Reduction
    • Established tight cash management and controls
  • Met with major customers (including 3 fortune 100 firms) to maintain support during transition and out-of-court restructuring
  • Led company through out-of-court restructuring using internal purchasing and accounting teams
    • Achieved voluntary support from 92% of unsecured creditors
    • Settled for $0.30 on dollar with unsecured prior to recapitalization
  • Managed banking relationship with senior secured lender.

Result: Company was successfully recapitalized with $3.5 Million of fresh equity.  A new CEO was transitioned into the company after 5 months.  The following fiscal year the company’s revenues exceeded $40 million with EBITDA projected to be at $4 Million. Four (4) years later the company had revenues of over $80 Million and EBITDA margins exceeding 11%.