Restructuring Advisors

Datran

Company: Datran BSL
Industry: Automotive and Recreational Vehicles
Size: Middle market
Region: Southeast
Expertise: Bankruptcy and Liquidation

The Challenge

The U.S. operations of Datran BSL inc.– served the automotive and recreational vehicle industry. The company applied Class A specialty coatings with high tech robotic systems and ran the largest hypo graphics dip tank operations in the United States. The large investment the company made in this South Carolina based facility took place in 2005. In the following years when automotive and recreational vehicle sales plummeted, company revenue fell dramatically and the operations were shut-down. Three of the company creditors placed them in an involuntary bankruptcy. The Trustee appointed to oversee the case engaged Jim Burritt, founder of Restructuring Advisors to manage the sale of the company assets.

Our Actions

Burritt secured the assets and engaged the former plant manager on a short term contract to assist in determining all of the various line configurations available with the equipment. After developing a database of likely buyers for the assets and preparing a full set of specifications on the various systems, Burritt and his team prepared an offering memorandum that was distributed to 43 prospective synergistic buyers and 9 potential financial buyers across North America. Burritt brought in other operational specialists from the Restructuring Advisors team and built a series of financial and operating models based on business recovery estimates to help prospective buyers understand the potential economic benefit the business line offered.

Of the 52 initially identified prospects 11 came to tour the South Carolina facility first hand. After the tours, six of the prospects expressed interest in purchasing all or the vast majority of the Company’s assts.

The Results

The engagement was completed over a 21 week period. Utilizing an auction process that mirrored a 363 sale process, one company purchased all of the company’s assets. The Restructuring Advisors team remained involved while riggers were engaged to remove all of the equipment. As hazardous materials were used in the painting and coating operations the Restructuring Advisors team brought in an environmental company to ensure that they were disposed of properly.