Citation Corporation
Finley, Colmer and Company was retained in March, 2004 to begin the development of a critical vendor program designed to assure continuity of supply in the event of a bankruptcy filing for this $1 billion manufacturer of forged auto and truck component parts. Our planning involved understanding the supply base of over 3000 vendors, the geographical challenges of 16 facilities located from Wisconsin to Texas, and matching supply requirements with current bankruptcy law and bank-imposed working capital constraints.
Working with Citation senior management, purchasing personnel, and outside legal counsel, we crafted a plan incorporating a bankruptcy operating forecast, a finite budget for payment of pre-petition balances, structured daily conference calls with plant procurement staff, and on-site legal assistance during the first days after filing. We provided expert testimony at the first day hearings which resulted in obtaining a Critical Vendor Motion from the Court, and staffed the assignment with three Finley, Colmer professionals along with Citation personnel who contacted each designated critical vendor to negotiate and execute payment plans tailored to individual requirements. This unique approach succeeded in continuity of supply and preservation of approximately $25 million of incremental working capital liquidity for the estate.
Finley, Colmer was subsequently retained in February 2007 by Citation to provide guidance on vendor payments in connection with a Court-sanctioned restructuring plan.
|
|