Case Studies

Full-Service Drilling Fluids Company

Role: Chief Restructuring Officer

The Challenge: Annual revenues plummeted from $165 million to $36 million due to a decline in drilling activity.

 

  • Operational Turnaround: Developed and implemented a plan that reduced costs by closing operations in three states and reducing headcount by 300+, returning the company to profitability.
  • Debt Reduction: Managed relationships with senior and mezzanine lenders to pay down $30 million in debt in nine months, eliminating an over-advanced credit position.
  • Financial Reporting: Established a rolling 13-week cash flow projection model required by lenders.
  • Vendor Management: Stabilized and managed critical vendor relationships during the transition.

Texas Skilled Nursing Operator

Role: Restructuring Advisor

The Challenge: The largest operator in Texas ($270 million revenue) had experienced three consecutive years of losses.

 

  • Profitability Restoration: Implemented new operational processes that boosted revenue and cut costs, swinging an annual $6 million loss to a $4 million profit.
  • Lender Compliance: Successfully brought the company back into covenant compliance with its lenders.
  • Forecasting: Developed a comprehensive cash flow model at both the facility and consolidated levels to analyze and review loan performance.

Precast Concrete Manufacturer

Role: Chief Restructuring Officer

The Challenge: A $110 million manufacturer had lost money for four years and was in default on an $18 million credit line.

  • Process Optimization: Identified production bottlenecks and reduced cycles, cutting Work-in-Process (WIP) inventory by 50% and restoring profitability.
  • Supply Chain Negotiation: Converted large supplier balances into long-term notes while securing extended 60-day terms for ongoing supplies.
  • Refinancing Success: Negotiated a six-month forbearance extension and added collateral to the borrowing base. This provided the time needed to secure competing bids from four lenders, ultimately replacing the existing debt with a new $20 million credit line.

Jeff C. Merritt
214.226.0764
jeff@merrittadv.com
101 S. Coit Road, Suite 36-306
Richardson, TX 75080