Restructuring Advisors

Atlantic Extrusions Corp.

Company: Atlantic Extrusions Corp.
Industry: Manufacturing
Region: New England
Revenue: $40 million
Expertise: Interim Management

The Challenge

The company’s secured lender grew weary of year on year losses, the lack of consistent leadership and an organization that seemed to be in search of direction. The Board of Directors and equity partners made a decision that without a thorough review of the business by an independent party that they would not provide any additional funding. The company manufactured and distributed extruded plastic products to the furniture, corporate rewards utilities and landscaping industry. The firm struggled with the challenges of operating a low margin business in a high cost environment. Management had not been able to achieve significant market share with any of the product lines. As such they were in a constant battle of competing on price.

Our Actions

After working with senior leadership on-site, and in cooperation with the secured lender, Jim Burritt, managing partner at Restructuring Advisors was engaged as the interim CEO. A complete review of all business processes was completed and an initial business assessment was completed for the equity partners, the lender and the management team. Burritt initiated a plan that quickly allowed them to listen, learn, plan, implement and adapt. The first step was to determine what business segments were strategic to the Company’s future. The assessment served as a catalyst toward actions that were required for the long term survival of the business. An assessment on each of the four business operations was completed. The assessment determined

  • what competitive advantages each business unit offered,
  • a cost/sell comparison versus their primary competitors,
  • a 5 year projected budget on capital equipment expenditures
  • market projections for the industries they sold in to as well as potential new markets for their product offerings
The Results

After consultation with the Board of Directors, equity stakeholder and the secured lender, Burritt’s finding were that for the business to achieve the results desired the company needed to relocate due to the prevailing high wage rates, energy and transportation costs and proximity of raw materials. After careful consideration the parties did not feel the overall economic environment was conducive to further investment. Burritt maintained his involvement with the company and managed the wind down and sale of the business lines, equipment and inventory, the trade names, customer lists and other intellectual property. The sale process resulted in the best possible net recovery for all parties involved.