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BABC Bankruptcy Group Completes Complex Recapitalization Transaction

On November 18, 2010, a BABC manufacturing client (majority-owned by a BABC private equity client) completed a complicated recapitalization transaction. As part of the recapitalization, the manufacturing client refinanced its existing senior facility with a new $60 million senior asset-based facility, restructured $42 million in subordinated mezzanine debt, and issued a new $2.5 million round of preferred equity. The new senior loan is secured by real and personal property located at 7 manufacturing facilities in 4 states. Contentious intercreditor negotiations, environmental issues, underfunded pension plans, foreign subsidiaries, and 9 different borrowing entities kept things interesting. John Myers (finance matters) and Jeff Buschmann (equity matters) led the BABC team, with assistance from John Murdock, Gordon Nichols, Chris Parker, Matt Mattingly, Johanna Jumper, and Mary Ward.