Business

Chicago Extruded Metals Company (CXM) is a leading manufacturer and supplier of brass extruded shapes and rods that services a wide variety of markets and customers throughout North America, with sales of $40 million. Customers include Delphi, Dana Corp., and Eaton.

Client Objective

Following an unsuccessful attempt by management to refocus operations, White Oak Group was engaged at the request of CXM’s senior lenders to maximize the value of the business through a restructuring. White Oak Group assumed the role of Chief Restructuring Officer and financial advisor. We operated the business within the constraints of the Company’s available liquidity, shared detailed operating information with customers to preserve confidence, and maintained the continuity of shipments without disruption – and so insured the continuation of the going concern.

This was especially a concern to certain strategic customers, notably Delphi Chassis Systems, Dana Corp and Eaton that the Company supplied on a sole-source basis. We worked closely with these groups, and with Delphi’s financial advisor BBK, on production and shipment schedules, which we were able to meet throughout the pre-petition and post-petition process. We also coordinated our purchases of inventory and developed tolling arrangements to insure our ability to maintain production during periods of diminished liquidity.

Results

As financial advisors, we prepared confidential information, contacted potential transaction participants within the industry and among financial buyers, received and evaluated indications of interest, and negotiated a sale of the business that was accomplished through a 363 sale subsequent to filing for Chapter 11 protection. As a result of the sale senior lenders received a full recovery and the business continued to operate under new owners. CXM retained its key customers subsequent to the sale.

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