Assignments

Kevin E. Gage Download Word Version
Summary of Turnaround Assignments - Tenure with Nightingale & Associates (2002 - 2004)

1. A $250 million privately held marketing services company. Company was formed through a roll up of entities in the direct marketing, fulfillment, marketing services and call center businesses.

Due to poor integration of acquisitions, over leverage and a poorly conceived consolidated business strategy, the company was unable to service its debt. Representing the mezzanine lenders, we were asked to review the businesses and rationalize its overall strategy (including top line sales expectations, opportunities for cost reductions, improvements in overall process as well as assessing management capabilities). In addition, we assisted in negotiating a new capital structure based on the anticipated performance of the restructured company.

2. A $1.2 billion publicly held manufacturer of plastics and metal processing equipment.

Due to a economy related decline in sales, this company’s manufacturing facilities were under utilized causing significant operating losses and negative cash flow. We were engaged by the senior lenders to work with the Company in developing and implementing a de-leveraging strategy through an aggressive restructuring of the company. This included an assessment and rationalization of various business lines, capacity requirements and cost saving measures. Through the implementation of this restructuring plan, (which included the sale of various business units, plant shut-downs and head-count reductions), approximately $330 million in senior debt was paid in full.

3. A $250 million privately held wholesale designer / contract manufacturer of children’s clothing.

The company, recently acquired through a combination of private equity and debt, was seeing poor performance with its licensed brands / private label business and experiencing significant margin pressures from “big box” retailers. With its working capital financing facility in an overdrawn position and a threat of default, we were engaged by the Senior lender to review opportunities for performance improvements, (including the rationalization of brands) and recommend restructuring alternatives that ultimately drove negotiations toward restructuring the business.

4. A $300 million publicly traded (debt) specialty foods retailer / franchisor.

Highly dependent on mall traffic, this well known specialty foods retailer was experiencing a decline in sales, profitability and cash flow. In technical default with its senior lenders, we were engaged to evaluate management capabilities as well as management’s proposed restructuring plan.

5. A publicly held manufacturer of interference mitigation equipment targeting the wireless telephone industry.

A company brought public prematurely; this business was experiencing product quality problems as well as underperformance in its top line growth. We were engaged to assist the company in developing a business plan to drive future growth. This included an assessment of the company’s target markets and size of those markets, its current product offering and market potential for those products, and an evaluation of internal capabilities (manufacturing, marketing, sales) and future needs (manpower, capital).

6. A $400 million plastics injection molding company.

Forced into involuntary bankruptcy by creditors, we were engaged as interim management to develop and implement a restructuring plan that ultimately led to this company confirming a plan of reorganization and emerging from bankruptcy. Work included an assessment and reorganization of management; rationalization of customers, product lines, and manufacturing facilities; negotiation with creditors and ultimately development and confirmation of the plan with the bankruptcy court.

7. A recently acquired, $100 million privately held manufacturer of vitamin and mineral supplements.

Due to the loss of its largest customer, this highly leveraged company could no longer service its debt. Engaged by the mezzanine lenders, we were asked to rationalize this business and confirm a strategy to restructure the company outside of bankruptcy. A detailed assessment of the business and its future performance capability drove negotiations with equity holders and senior lenders to an ultimate consensual restructuring of this business.