Innatech

Situation

Innatech (the “Company”), a $50 million multi-shot plastic injection molder serving the automobile and consumer products industries, entered forbearance with its lender after accumulating debt in excess of four times annual sales. The Company was faced with immediate liquidation by its lender.

Solution

Amherst represented the Company and acted as a de-facto CFO throughout an extremely contentious Chapter 11 bankruptcy that included multiple short-term financing arrangements and daily negotiations with multiple stakeholders.

Initially, Amherst sought DIP financing and was able to secure a proposal. This was sufficient to convince the incumbent lender to provide limited funding with Amherst managing daily cash, relationships with customers, financial reporting, and vendor and supply chain management.

Results

Leveraging Amherst’s industry relationships, the Company was successful in securing customer accommodations.

It was determined by those representing Innatech that the best course of action for the Company was to conduct a sale through bankruptcy.

After the ‘stalking horse’ withdrew its bid a week before the final sale hearing, Amherst identified and approached a new buyer, and successfully sold the Company. Proceeds were sufficient to provide full payment to the Senior Secured Creditor as well as satisfy all administrative claims.