Case Study: Stabilisation and restructuring for distressed automotive supplier​

Automotive Supplier
Automotive Supplier

Background

The company is a Tier 1 automotive supplier, manufacturing polished stainless steel exterior trim for luxury automotive OEM’s in the UK.

The company was in severe financial distress.  The business had become over-leveraged following a difficult product launch.  Investment was required to deliver a further 40% increase in production capacity, whilst ensuring a sustainable cost base could be achieved

How We Helped

  • Achieved stability through daily cash management of severe liquidity shortage.  Communicated critical situational updates to stakeholders
  • Delivered a solvent restructuring, whilst maintaining 100% OTIF delivery to requirements.  Secured a buyer for the business to provide the investment required to meet coexisting demands of customers and creditors
  • Delivered a seamless transition to the new shareholder’s team, whilst simultaneously supporting the recovery of a 3-month product launch commitment
  • Appointed by the new shareholder to develop the implementation plan for the cost reduction and operational improvements, establishing processes and pragmatic ways of working to address fundamental operational gaps 
  • Recruited and managed external consultants, ensuring sufficient resource to maintain pace on improvement workstreams
  • Improved internal communication to overcome functional silos at all levels of the organisation, to ensure the internal team was working to one common plan

The Results

  • Restructured debts, in conjunction with operational improvements to ensure short-term liquidity
  • Provided new investor with diagnostic insight to execute effective acquisition and leadership to accelerate implementation of restructuring plan 
  • Established foundations of a sustainable cost base for the new executive team to continue building long-term success