Restructuring Advisors

Top Air, Inc.

Company: Top Air, Inc. d/b/a Top Air Sprayers, Better Built & Parker Wagons
Industry: Agriculture Equipment Manufacturing
Revenue: $65 million
Region: Midwest
Services: CRO – Recovery and Sale of Assets /Company

The Challenge:

A leading manufacturer of agricultural equipment with multiple Midwest facilities and a strong dealer network was struggling in a highly price competitive market with a high debt load. The debt load had been incurred through the completion of several acquisitions, all of which were not successful.

Our Actions:

The team at Restructuring Advisors completed a recovery valuation analysis providing the secured creditors with an assessment outlining the expectations on total dollars recovered as well as an operating budget and time line for the entire project.

Our team identified buyers for the trade names, patents, customer list and other intangible and intellectual property. Working in concert with the lenders, we negotiated the s ale of all remaining inventory, collected the accounts receivable, and managed the auction of the manufacturing and office equipment.

The Results:

Approximately 65% of the receivables were collected and 85% of the inventory was sold at a combined 28% gross profit margin in the first sixty days. In a parallel effort, our team completed the s ale of the intellectual property, remaining inventory and receivables to a larger farm implement company whose strategy was to broaden their product offerings and increase their dealer network. The entire project was completed and closed in 90 days. The net recovery was approximately 23% higher than the secured lenders had originally anticipated. This increase in value allowed the secured lenders to get out whole with a remaining balance returned to the shareholders.