| Case Studies |      |
A US company in breach of Bank covenant and in work-out was significantly adversely impacting its European group (headquartered in Switzerland and with manufacturing operations in Germany, Czech Republic and UK) because of imposed restrictions on the level of European funding and inter-company trading. Local management were on the verge of filing for bankruptcy in Switzerland that would have caused all European subsidiaries to follow suit. BM&T Principals assessed the viability of the European group and worked with local management to generate sufficient cash flow to maintain sufficient liquidity, and with legal counsel to assess and maintain solvency in the various jurisdictions thus avoiding bankruptcy. In due course the group was disposed of through an MBO.
A French company, a subsidiary of a distressed US company was in a spiral of decline because of lack of effective communication with the parent company. BM&T Principals assessed the viability of the operation and worked with local management to create an alternative strategy. Local funding was obtained for both working capital and capital investment. The subsidiary was turned around and from local funding able to repatriate much needed funds to the parent through loan repayment.
A Swedish company, part of a US group in work out had used $20 million to bring a high tech product to market. The parent company was unable to support the continuing cash burn and insolvency was threatened. BM&T Principals redirected technical resource from long-term development to resolve short-term operational issues, turning the company cash positive to avoid a bankruptcy filing, and then worked with the parent company to successfully divest the subsidiary to a UK trade buyer.
A US company having acquired a European group with an Italian factory and distribution subsidiaries in France, Germany, UK and Switzerland from a distressed European vendor breached bank covenants within six months of the acquisition when the vendor progressively filed for bankruptcy in all its European locations causing collateral damage to the acquired group. BM&T Principals took over the operational and financial management of the acquired group and restored the company to profitable operations whilst working with legal advisors to manage the complex legal issues arising from the vendor bankruptcy in Italy, France and Germany.
