BRISKIN MANUFACTURING COMPANY

Case Highlights

• Structured an interim operating agreement to continue production for key customers
• Sold automotive business as a going concern, enabling full payment to lenders and significant distribution to unsecured creditors

Case Narrative

Briskin Manufacturing Company’s two main business lines were fuel tank manufacturing for automotive customers and the fabrication of television picture frames.  This multi-state Tier II automotive supplier ran into severe liquidity issues and following the company’s failed attempts to either sell and/or refinance the business, DSI was appointed as the Assignee for the Benefit of Creditors.

As Assignee for the Benefit of Creditors, DSI was able to structure an interim operating agreement with a select group of major customers, including Delphi Automotive Systems, General Motors, Isuzu Motors and Sony Electronics, to continue production of their products for a period of time until alternative sources could be found.  This interim agreement also provided the Assignee with enough time to assess the prospects for the sale of the business.  As the production structure developed, buyers came forward for the entity, and DSI was ultimately able to arrange for a sale of the automotive operating business to a new supplier qualified by both General Motors and Delphi.

As a result of the assignment and sale process, the secured lenders were paid in full, and a significant dividend was made available for the unsecured creditors.