Aerospace Component Manufacturer, Connecticut

A supplier of critical components to the major jet engine manufacturers was unable to react quickly enough to contraction in the military and commercial aerospace markets. This resulted in a severe working capital crisis and defaults in loan covenants. OEM Capital Corp. was able to restructure the business which led to a successful reorganization of the company under Chapter 11 and substantial recoveries by the lenders and other creditors.

Aerospace Fastener Distributor, California

An aerospace fastener distributor, which had been purchased by a large venture capital firm, was experiencing financial difficulties. Inventories had ballooned and the board of directors was losing confidence in the chief executive officer. The investors found themselves gradually sliding into day-to-day crisis management. OEM Capital Corp. successfully reoriented the business, instituted stronger cash controls, replaced managers, closed one location and re-directed the employees to emphasize selling. Vendor relations were also improved.

Air Conditioner Manufacturer, New York

Air Conditioner Manufacturer, New York This privately owned manufacturer of packaged terminal air conditioners, had diversified away from its core business, resulting in substantial losses. This placed it in default of its bank covenants. OEM Capital Corp. assisted the firm to make certain organizational changes, divest itself of non-core businesses and refinance with a finance company.

Ambulance and Ambulette Service Provider, Westchester

A publicly traded ambulance and ambulette service provider suffered declining earnings as a result of an acquisition. This placed it in default of its bank covenants. OEM Capital Corp. assisted the firm to make certain organizational changes and refinance with a finance company.

Automotive Parts Re-Manufacturer, California

The company was a re-conditioner of used automobile brake boosters and master cylinders. It remanufactured boosters without regard to its inventory levels. The work force was reduced by 20% and an aggressive marketing campaign was instituted to boost sales. The company began to generate substantial cash to its owners. Subsequently, OEM Capital Corp. arranged the sale of the business to a competitor enabling a cash distribution to be made to the investor group.

Building Maintenance, New York

A building maintenance company whose revenues had reached $35 million was experiencing large cash outflows due to a reduction in revenue and reduced contract margins. A very large customer was in danger of being lost and another had just gone bankrupt. Within a short space of time, OEM Capital Corp. was able to stabilize the business and sell off a marginal division. Subsequently, OEM was able to arrange the restructuring of the bank loan.

Cabinet Fabricator, New Jersey

The owners of a privately held fabricator of electronic enclosures in financial difficulty wished to sell their business. OEM Capital Corp. organized a sales program that put the business in its best light and permitted the shareholders to realize an above average valuation.

Car and Truck Franchise, Florida

The largest licensee of a major car and truck rental company was under a severe cash squeeze. OEM Capital Corp. arranged an interim bridge loan and negotiated the sale of the company to a subsidiary of a major automobile manufacturer. The original shareholders were relieved of all liabilities and received a cash price well in excess of the company's book value.

Computer Imaging Systems Manufacturer, California

A newly acquired business of a NYSE listed company was experiencing a weekly cash loss in excess of $100,000 due to delays in the introduction of a new product to replace an aging product line. After a review that determined the new product would not be competitive, the business was scaled back and sold to a buyer who immediately moved operations. The lease obligation in a nearly vacant office park was transferred to another company.

Computer Service and Software Developer, New York

A publicly traded data processing center for the plumbing and electrical trades was in the process of converting its business to that of a software and value-added reseller of microcomputer based network products. The decline of the data processing center business coupled with the high costs of developing the new product line combined to place the company in default of its bank covenants and other credit agreements. OEM Capital Corp. was able to stabilize the company through the formation of an informal creditors' committee who worked together with management towards a restructuring of the business.

Court Reporting Service, New York

A large court reporting firm was having great difficulty integrating the acquisition of another court reporting business of approximately equal size. OEM Capital Corp. was able to substantially resolve all the problems through a reorganization of the middle and upper tiers of management and the hiring of an additional key manager.

Direct Mail Printer, Pennsylvania

A publicly owned direct mail printer was experiencing financial difficulties. The lenders were growing increasingly concerned over declining revenues and increasingly negative cash flows. OEM Capital Corp. was able to reduce annual expenses by over $1,000,000 and change the company's job bidding criteria with very favorable results. At the end of our engagement, the company was solidly profitable.

Electrical Connector Manufacturer, Connecticut

An American Stock Exchange listed company was facing a redemption date on one of its bonds. OEM Capital Corp. devised a strategy that allowed the company to secure the necessary financing using the sale value of each of its businesses as collateral.

Graphics Arts Publisher, New York

A 75 year old publishing firm with limited financial resources was experiencing profit pressure in its core business. Its only competitor was owned by a major newspaper publisher. OEM Capital Corp. helped the company to acquire its competitor by arranging the purchase and securing the financing.

Marine Electronics Manufacturer, California

A manufacturer of marine auto-pilots and fuel management systems had invested its available resources in the development of a new auto-pilot and supporting inventory. OEM Capital Corp. saved the company from bankruptcy by stopping the manufacturing and renting 40% of the facility. In addition, OEM raised additional cash by negotiating the sale of a non-exclusive right to manufacture the new auto-pilot. The company now has no debt and has continued to operate profitably.

Non-ferrous Metals Distributor, New York

A privately held business experienced a cash crisis at a time when the owners wished to retire and sell the company. OEM Capital Corp. managed cash flow by actively communicating with trade creditors while simultaneously holding an auction of the business. The company was sold to a competitor at a price that not only satisfied creditors in full but provided shareholders with much more cash than might have been realized in a liquidation.

Plastics Injection Molder, California

Sales of a plastic injection molder serving drug companies were declining and only 30% of capacity was utilized. OEM Capital Corp. quickly reduced overhead by closing a building, reducing staff and eliminating unnecessary expenses. To utilize the excess capacity, the company successfully attracted lower margin but profitable consumer product business. Additional cash was raised by selling excess raw material. The business was brought to break-even cash flow giving the owners time to sell the company.

Pump Manufacturer, Florida

OEM Capital Corp. assisted investors formulate a strategy to reverse the negative cash flow at their pump manufacturer. The company rented pumps for dewatering projects. The market was competitive and margins were low. We recommended that the company reduce its dependence on rental income, concentrate on pump sales and bid directly on dewatering contracts. The company adopted this strategy and within four months became cash positive. The business was subsequently sold, releasing capital to its owner.

Software Services, California

An LBO group acquired several businesses including a software company experiencing erratic performance. It was judged to be high risk because of its dependence on a few employees. Within six weeks, OEM Capital Corp. assisted the division's management to arrange financing to purchase the business.

Thermal Transfer Ribbon Manufacturer, New York

A privately owned manufacturer of thermal transfer ribbons had been incurring large losses as a result of poor financial management and excessive expenditures on perquisites. OEM Capital Corp. redirected the efforts of the firm towards divesting real estate and excess assets, trimming expenditures and closing a European manufacturing joint venture. This restored the business to financial stability.

X-ray Systems Manufacturer, California

A publicly traded manufacturer of x-ray systems for industrial and commercial uses was in default of its bank covenants and was having difficulty funding operations. OEM Capital Corp. worked with the company and the bank to arrange a sale of the business under the protection of Chapter 11 which resulted in substantial funds being generated for the bank and other creditors.

Corporate Restructuring