Doing Business in Chicagoland and Beyond

Charles Winternitz, President of Loeb Winternitz Industrial Auctioneers, Reports on the Completion of Several Auction & Liquidation Projects of which an Equity Position was taken, or Completed on Agent Basis: Truan Candies, Chocolate Manufacturer (MI); Scott Products, Auto Supplier, CNC and Metalworking Equipment (MI); Surplus to Vienna Beef, Meat Processing & Packaging (IL); Optical Energy, HVAC Contractor (IL); Allen Harim Foods, Chicken Kill Plant, Processing and Packaging (MD); Miami Valley Publishing, Large Format Web Printing, Pre-Press and Bindery (OH); Kissel’s Spiced Jams, Specialty Preservatives Manufacturer (IL); DaVinci Foods, Frozen Pizza Manufacturer (Canada); (2) Sales for a Major Medical Device Manufacturer, Clean-Room, Robots, Assembly (VA); Medco Inc, Metalworking Job Shop & CNC Equipment (IL); Enjoy Life Foods (Surplus to Mondelez Intl), Bakery & Packaging Equipment (IL); and Inserts USA, Post Press Enhancement, Direct Mail Fulfillment, Tipping, Die Cutting & Bindery (IL).

Jake Miller of Oak Point Partners announced the purchase of all remaining known and unknown assets in the IndyMac Bancorp, Inc. Bankruptcy Case and the Mid-States Express, Inc. Bankruptcy Case. The Remnant Purchase Deal brought additional cash to both Estates at the end of the Case and also helped to avoid the hassle of something showing up after the Final Decree that can be costly to resolve and typically isn’t big enough to justify reopening the case.

AEG was recently retained by a Midwest based wholesale distribution company to assist in managing the unexpected departure of the company’s CFO. AEG’s role includes the development of actionable financial reporting and cash forecasting tools from a recent but incomplete system implementation as well as mentoring the Treasurer toward greater responsibilities. AEG is also assisting management in its discussions with the company’s lenders.

Tom Jones of Concord Financial Advisors, LLC announced the closing of a $7.45MM Senior Debt transaction for an Illinois-based designer and a manufacturer of radio frequency and microwave technology. The transaction included a senior secured revolving line of credit, equipment term loan and real estate mortgage. Concord served as the exclusive financial advisor to the company.

David Johnson of Abraxas Group completed the successful turnaround of a private equity backed construction company. During his tenure as Interim CFO, David led a comprehensive turnaround and restructuring of the company that resulted in a doubling of enterprise value and the successful refinancing of $100MM in debt facilities.

KPMG Restructuring recently completed a liquidity, cash flow and working capital advisory engagement for a packaging portfolio company of a major private equity fund with approximately $150 million in senior secured and mezzanine debt. The company was facing a large debt service payment during its seasonal low point. The engagement was led by Kevin Krakora, CTP and Jonathan Weinberg.

In the Midwest Region, Summit Financial Resources funded a $150,000 A/R credit line to a manufacturer of auto components in Michigan, a $500,000 A/R credit line to a software services firm, a $450,000 A/R credit line to an oil field services firm in North Dakota, a $3,500,000 A/R credit line to a trucking & distribution firm located in Illinois, and a $4,000,000 A/R & Inventory credit line to a cable and harness manufacturer in Missouri.

On June 30, 2016, the Official Committee of Unsecured Creditors of World Marketing Chicago, LLC, et al., led by its legal counsel, Sugar Felsenthal Grais & Hammer LLP, confirmed its chapter 11 plan of liquidation with unanimous support from the debtors’ vendors, senior lenders and employees. As of their bankruptcy filing, World Marketing scheduled assets in excess of $11 million and liabilities in excess of $17.6 million. Since the Petition Date, the Committee, working closely with SFGH, has engaged in extensive investigations and litigation against the Debtors’ former insiders and an affiliated lender. Sugar Felsenthal Grais & Hammer LLP also represented a litigation funding firm in purchasing a $26.2 million dollar interest in litigation from the Chapter 7 Trustee of the estates of Magnesium Corporation of America and Renco Metals.

Linkage Capital Management acted as the exclusive financial advisor to an owner of five businesses to secure/close a $3.9 million loan. Lou Marosi, President of Linkage commented, this transaction was complicated by four parcels of real estate, $1.1 million of loans from eight investors, investment property, intercompany transactions, and four lenders financing working capital or real estate. The new facility provides bountiful liquidity and attractive rates/terms. The businesses will realize improvements to cash flow, reduced interest costs and reduced reporting to investors/lenders. The businesses are well positioned for future expansion/growth.

Loeb Term Solutions is pleased to announce the graduation of a Midwest metalworking facility after having provided an equipment term loan back in 2014. The company, a manufacturer of compressor housings and custom components for turbochargers, sought equipment financing to leverage working capital in order to purchase the company after the owner passed away suddenly. After less than two years working with LTS, the company has grown substantially and is now able to qualify for traditional financing with a commercial bank. Loeb Term Solutions also provided an equipment term loan to a Pennsylvania-based contract packaging facility specializing in private label and specially crafted fine foods. The client was in need of additional working capital in order to expand their operations and purchase additional machinery.

Of the nearly 1.3 million licensed attorneys and 200,000 law firms in the United States, Goldstein & McClintock LLLP was: (1) recently nationally ranked number 15 by volume of active bankruptcy cases law firms are involved in on a national basis by The Deal’s Bankruptcy League Tables; and (2) selected as a member of the Credit Research Foundation, one of the nation’s most respected organizations dedicated to credit and financial management. Regarding its finance and restructuring practice, G&M’s activity included representing borrowers in workouts and bankruptcies (most recently including a manufacturing company), receiverships (including resolving a receivership placed on a client’s assets), ABCs (including a tool manufacturer), sale transactions (including a chain of dessert stores), creditors’ committees (including confirming the committee’s chapter 11 plan for a manufacturer of commercial generator housings), environmental agencies (including reaching a settlement permitting confirmation of Alpha Natural Resources’ plan of reorganization), and senior lenders (including being retained by a bank in its refinance of two multi-million dollar loans to provide tenant improvements for multi-family apartments in Ohio).