Automotive
Financial Advisor to Buyer
DSI provided financial advisory services, including acquisition due diligence and negotiations with the selling entities, on behalf of a foreign buyer in its successful acquisition of two U.S. second tier automotive parts manufacturers and the merger of those entities into the buyer's existing business.
DSI Team: Bill Brandt, Clare Pierce, Brian Calvert, Jim Moore & Tom Spielberger
Manufacturer of Small Refrigerated Appliances
Financial Advisor to Company
DSI was retained by Oasis, a nationally known manufacturer of water coolers and related products, to analyze alternatives to sale, and, as necessary, to advise with respect to the disposition of operating units. Manufacturing units were sold to Patriarch Partners LLC, maintaining operations and continuing the brand.
DSI Team: Fred Caruso, George Shoup, Pat O'Malley, Clare Pierce & Jill Costie
Subprime Consumer Finance Company
Replacement Manager
Mercury Finance Company was the nation's largest subprime specialty consumer finance company, providing products through a network of subsidiaries and approximately 200 branch offices. DSI personnel were appointed to senior management positions, including CEO and CFO, following an announcement of massive financial irregularities and a $2 billion loss in the company's market capitalization. DSI implemented a business plan that stabilized the core business, discontinued or sold non-profitable operations and disposed of non-critical assets. During the process of this restructuring, more than $425 million of debt was paid down on obligations of more than $1 billion, and at the time its plan of reorganization was confirmed, Mercury held in excess of $75 million in cash and short term investments. The plan provided for a conversion of a significant portion of the debt to equity, leaving the former equity holders with a significant, but diluted stake. The company continues in business today.
DSI Team: Bill Brandt, Pat O'Malley, Brad Sharp, Fred Caruso, Clare Pierce, Bill King & George Shoup
Trucking; Forestry; Real Estate
Post-Litigation Trustee
DSI was named as Trustee of the Ebbers Asset Trust by the Comptroller of the State of New York and MCI/Verizon. The Trust became the vehicle used to wind down and dispose of all of Bernie Ebbers’ personal holdings, including a number of operating businesses as well as a significant amount of real estate and other assets. These assets had a gross value in excess of $1 billion and included equity interests in timberlands, a trucking company, sawmills, a marina, large agri-business enterprises and various other forms of real estate investments. In addition to having to negotiate with Mr. Ebbers in connection with the disposition of virtually all of these assets, the DSI engagement included sales of these businesses as well as sales of minority interests in other businesses, the refinancing of some ongoing interests, the disposition of other wholly-owned assets, as well as claims negotiations, claims reconciliation and claims settlements.
DSI Team: Bill Brandt, Joe Luzinski, Fred Caruso, John Wheeler, Fritz Reed & Brian Weepie
Distribution, Automotive
CRO, Financial Advisor to Company
Clore Automotive, LLC is a marketer and distributor of branded products including battery chargers, portable power, welding and cutting equipment, lifting equipment (jacks), and fluid exchange products, sold through traditional automotive channels. DSI was engaged by the Company’s equity sponsor to provide a preliminary assessment of the company and recommendations for its rehabilitation, and its role was then expanded to include Chief Restructuring Officer. The company divested through a sale two underperforming business units, consolidated its facilities and operations and "right-sized" its overhead and staffing, resulting in a swing to profitability and a significant reduction in senior debt balances.
DSI Team: Joe Luzinski, Brian Calvert, Clare Pierce, Jim Moore, Yale Bogen
Chemicals
Financial Advisor to Outside Board of General Partner
DSI was engaged to provide advice to the outside directors of a wholly owned subsidiary of Borden Chemical, which was the general partner of a limited partnership that operated chemical plants in several states. The General Partner and the Partnership were separately in Chapter 11, and had different creditor constituencies. DSI's role included directing the activities of the General Partner, subject to the board's supervision, resulting in a joint, confirmed Chapter 11 plan.
DSI Team: Fritz Reed & Eric Sweitzer
Textiles
Financial Advisor to Company
DSI was retained as financial advisor to the company in connection with entity valuation and appropriate interest rates on securities in the proposed reorganization capital structure. Malden Mills is the manufacturer of Polartec performance fleece. A key component of the engagement was assessing the company’s business plan and attendant projections. This required interviewing key executive management and forming independent conclusions regarding the economic impact and validity of assumptions underlying the projections. There was considerable disagreement among certain constituencies regarding the value of Malden Mills. DSI prepared valuation reports and assisted in negotiations with other constituencies that provided the basis for agreement among the parties.
DSI Team: Bill Brandt & Brian Calvert
Telecommunications
Financial Consultant to Buyer
Elantic Telecom, Inc. is the owner and operator of fiber optic networks concentrated in the Eastern and Northeastern United States. DSI was retained by the parent company to evaluate the parent-sponsored plan of reorganization and to prepare and testify as an expert at plan confirmation as to the reasonableness of the plan. DSI evaluated the assets, and assisted in negotiations with the creditors' committee and other prospective buyers to achieve a settlement between the committee and the debtor.
DSI Team: Bill Brandt, Pat O'Malley, Brad Sharp, Fred Caruso, Clare Pierce, Bill King & George Shoup
Manufacturing
Valuation Consultant to Senior Lender
DSI provided valuation services to the lender to assist in developing various tactical and strategic alternatives regarding payment of senior secured debt. Holland American Wafer Company is a contract manufacturer for large food marketing companies and also produces its own brand of sugar wafer cookies. Specifically, DSI provided an enterprise valuation of Holland American Wafer Company to determine if the entity was more valuable as a going concern than liquidated. DSI performed industry research and conducted several interviews of company executives to understand and analyze company projections and the underlying value of brand equity. DSI prepared a detailed valuation report employing several valuation techniques appropriate to the situation.
DSI Team: Brian Calvert & Brian Weepie
