Restructuring Advisors

American Press

Company: American Press
Industry: Printing, Publishing and Mail Handling
Region: Mid-Atlantic based
Revenue: $150 million
Services: Wind down and liquidation

The Challenge

The largest U.S. based asset lender had a long standing credit client in the printing and publishing industry. The printer who had a national reach and strong mail handling service capabilities had seen their revenue drop by 66% as their clients moved from direct mail to web based marketing solutions.

Our Actions

Jim Burritt founder of Restructuring Advisors was engaged in a cooperative effort between the lender and the owner to manage the wind down of the business through an out of court process. Burritt initially provided a comprehensive recovery analysis that gave the lenders and management team a clear set of cash flow expectations. A WIP build-out analysis was completed to determine what products could be printed from the on-hand inventory that would provide the highest utilization and achieve the greatest gross margin. In a concurrent effort, auction firms were identified to sell the printing presses, binding equipment and mailing systems.

The company had a $2.0 million pension short fall and Burritt and the Restructuring Advisors team took the lead in dealing with the PBGC on handing the pension assets over to the PBGC as well as handling the issues associated with the shortfall.

The Results

While nearly 40% of the printing industry had been shuttered from 2009 through 2012, the Restructuring Advisors team were able to complete the WARN Act notice period, negotiate a no penalty hand-off of the underfunded pension and complete the wind down the company in just over 150 days. The management team and the secured lender were kept abreast of what was happening at each step along the way. Restructuring Advisors managed the wind down which allowed the secured lender to be paid in full.