Gordian Group served as financial advisor to the company in connection with its successful plan of reorganization, including the sale of certain assets.
Case Study
Sudbury
CLIENT: Sudbury
Situation
This former Fortune 500 holding company had 23 operating subsidiaries which manufactured a broad range of industrial products. Approximately 70% of its revenues were derived from the domestic automotive industry. Given the downturn in the economy in the early 1990’s, Sudbury found it difficult to service approximately $170 million of bank and subordinated debt.
Engagement
Gordian Group was engaged to advise Sudbury in its financial restructuring. Gordian Group assisted management in evaluating Sudbury’s business operations, and Gordian Group designed a comprehensive plan to restructure Sudbury’s balance sheet, which was confirmed in bankruptcy court in August 1992. In addition to advising Sudbury in implementing its plan of reorganization, Gordian Group assisted Sudbury in divesting certain assets as contemplated by such plan.
Outcome
The reorganization structure permitted all classes of creditors and stockholders to benefit from the subsequent significant appreciation in Sudbury’s operations, and included "hard" forms of consideration, as well as contingent securities designed to accommodate the differing needs and demands of the parties.