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Case Study

International Construction Company

ESOP-owned multinational construction company, including embassies, large roadway projects, industrial buildings, stadiums, and residential home development projects.

Revenue

$1.5 billion

Industry

Construction

Services Provided

Turnaround & Business Restructuring, Distressed M&A Support

Situation

Two failed projects related to building out cement plants in the Midwest resulted in cost overruns exceeding $60 million which could not be recovered. In addition, the Company had significant litigation and change-order cost recoveries on foreign-based U.S. embassies, causing significant working capital shortfalls. Further, working capital management was impacted by disparate financial reporting systems across five independent operating units, complicating accurate prediction of expected cash flows and collection management.

Accomplishments

  • Served as Chief Restructuring Officer reporting to the board of directors, supplementing CEO who was suffering through cancer treatments. Responsible for managing cash and targeted downsizing activities, including managing negotiations with surety, secured lender, and insurance companies’ bondholder group.
  • Managed downsizing initiatives across five divisions and assisted with preparation of divisions for sale in conjunction and support investment banker efforts.
  • Concerted actions over the course of 18 months resulted in full recovery for bondholders, secured lender and minimized losses on bonded projects with offsets from litigation and change-order recoveries.