Case Studies
CASE STUDY #1
US-based metal smelting company was in default on its term loans and revolving line of credit of over $90 mm in face value with an enterprise value equal to its debt.
Cash reserves were near zero. Lenders were threatening foreclosure by the end of the year, threatening 300 plus jobs and owners equity investment. A process was initiated to find a buyer for the notes.
Marco affiliate was the lone viable buyer
Marco affiliate bought the notes, provided working capital finance, restructured the debt, and rescued the business
Today the company is a viable public entity with a market cap in excess of $1.5bln and an enterprise value of over $1.6 bln, with more than 1,500 employees with operations worldwide
Original owner participated in the equity instead of “handing over the keys” to an unfriendly lender
CASE STUDY #2
Large integrated steel mill was in default on its bonds and rumored to be near bankruptcy • Steel mill was near the end of its liquidity on its revolving credit agreement
Steel mill depended on inventory to keep operations going
Marco affiliate customized a unique inventory financing transaction which held inventory at the premises of the steel mill for up to six (6) months enabling the mill to access the inventory pile as needed
Inventory was off-balance sheet, preserving the remaining liquidity on its lines of credit and reducing its inventory level and increasing its inventory turns
The financing arrangement enabled the mill to buy time and to restructure its loans from a position of strength and avoid a bankruptcy filing
CASE STUDY #3
American commodity producer was interested in increasing its inventory turns and reducing debt
Raw materials required long lead times and shipment from overseas and significant inventory investment due to different specifications that needed to be selected from within a few days notice requiring extra stocking of all specs
Marco provided a customized inventory agreement for up to $20 million , holding up to 120 days of inventory while providing just –in- time delivery to the client enabling the client to significantly reduce inventory levels while freeing up working capital for other purposes
Learn more about our financing options by talking to one of our trained professionals.