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Case Study: Trailer Manufacturer
Viability Analysis, Turnaround Plan Development
& Implementation
Company: $150 million manufacturer of dry and refrigerated trailers, flatbeds and dump trailers
Situation / Tasks Performed: The Company had an extreme cash shortage and was unable to meet payroll. Vendors, who had continued to
ship materials to the Company, were now demanding four and five times payment for current shipments. The Company was in an overadvance
situation and the Bank would not allow any increase in exposure. The Company engaged TRG in a crisis management capacity. TRG produced
a 13-week cash flow forecast in two days and followed with a 13-month pro-forma, which bought the Company an additional month of borrowing.
TRG also assisted the Company in developing plant consolidation models to rationalize operations and return the Company to profitability in
the long-term. However, due to a severe decline in cash receipts and high fixed costs that could not be reduced in the immediate-term, TRG
determined that the Company would run out of cash almost immediately.
Results: The Company ultimately filed a voluntary Chapter 7 as they had run out of the time, opportunity and capital to implement any of the
restructuring opportunities available to them.
Nature of Assignment:
Primary: Viability Analysis
Secondary: Turnaround Plan Development
& Implementation
Industry: Transportation
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