Jacobs Industries

Situation

Jacobs industries is a Tier 1 and 2 automotive supplier providing roll-formed parts. The Company filed for bankruptcy due to accumulated losses and depletion of capital.

Up to 18 assembly plants could have been shut down by the Company if the business had stopped production.

Solution

Acting as Chief Restructuring Officer and interim Chief Financial Officer, Amherst managed all daily operations and liquidity.

Financial controls were implemented which allowed the company to communicate with customers and negotiate with suppliers.

Amherst led the negotiations between the lender and customers to develop the turnaround and sale plan.

Results

Amherst managed communications with the customer base and lenders to maintain stability.

The Company, lenders, and customers entered into an Accommodation Agreement to provide funding for its bankruptcy.

Amherst successfully managed the cash flow of the company to a very tight budget throughout the sale process.

The Company was sold through a §363 sale process optimizing the recovery for its stakeholders and maintaining uninterrupted supply to its customers.