DSI'S Role

Consultant to Company

Services Provided

  • Business Plan Analysis
  • Consensual Restructuring
  • Financial Restructuring


Case Highlights

  • Implemented a complete organizational and transactional business review
  • Advised on labor, trade debt and other matters
  • Out of court restructuring

Case Narrative

This privately-held manufacturer of Tier II o-ring, seal-ring brake and sundry rubber components primarily sold its products to Tier I automotive suppliers.  DSI assisted management with an assessment of the company’s options to restructure secured debt, approach trade vendors, assess immediate cash needs and manage through a liquidity crisis.  DSI structured a short-term forbearance agreement with the secured lender, recommendations of product offerings, restructured domestic and foreign operations which stabilized the company operations.  DSI prepared a “bottom-up” business plan by SKU and right-sized the labor and overhead of the organization to match its restructured revenue stream and sales potential. DSI assisted in negotiating an extended forbearance period with the secured lender to allow implementation of the restructuring plan, advised the company on labor union issues, worked with company vendors to defer, compromise or restructure trade debt, implemented headcount reductions, transitioned customers from unprofitable to profitable products and avoided any judicial proceedings.