Plante & Moran Assists $150 Million Automotive Supplier With Crisis Management

Although the $150 million automotive supplier had been a viable company for more than 20 years, under priced contracts and poor operations began to tell a different story. Soon, the company was losing money at an ever-accelerating page. “The company was burning through $100,000 each week,” says Restructuring & Turnaround Partner, Tim Weed.

The liquidity crises threatened current production as well as the launch of several new products. Lack of timely and accurate financial data further complicated matters. “It was clear that the company was in free fall,” says Weed. “Plante & Moran was hired to stabilize the situation and transition the company as smoothly as possible.”

That’s just what Plante & Moran did. The team stabilized and controlled short-term cash; provided financial forecasting to support intensive negotiations with the bank, customers, and trade vendors; coordinated supplier deliveries and payments with customer and financial advisors; and facilitated inventory and document tooling in preparation for resourcing. As a result, there was no interruption to production, secured creditors were repaid in full, and the wind down of receivables, inventory, and tooling was successfully managed. “It was a dire situation,” says Weed, “but the outcome was the best for all parties under the circumstances.”