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Linden Lumber Company, Ltd.
Finley, Colmer and Company was hired in November, 2005 to assist the Company in evaluating its options with respect to a possible refinancing of its existing senior debt in light of declining corporate operating performance. The complexity of its problem was exacerbated by the division of collateral between two senior lenders who had divergent views on how best to deal with the situation. Given the state of the industry at that time and the relationship of collateral values to existing bank debt, we and the Company collectively determined that the most economical approach was to attempt to restructure the existing bank debt and create sufficient working capital liquidity through this process.
During the spring and summer of 2007, the continuation of poor operating results and erosion of collateral margins prompted a change in the scope of our assignment. We were tasked to look for either a strategic partner or financial investor capable of providing additional liquidity to the enterprise, thereby preserving jobs in this southwestern Alabama community.
In the fall of 2007 we were successful in generating interest from two strategic parties, resulting in a Letter of Intent for a sale of substantially all of the Company's assets. This transaction closed in April, 2008. |
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