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Greatwide Logistics back to case studies
Revenues $1.1 billion
Highly leveraged roll-up of several trucking companies

Capstone was retained by counsel to the Agent under the Pre-Petition Senior Credit Agreement to evaluate Greatwide Logistics’ (the “Company”) current situation and business operations and to guide the Secured Lenders through a restructuring process.  The Company was over-levered having borrowed a significant amount of indebtedness to roll-up different businesses and was impacted by the economic downturn.

  • Concern that entering Chapter 11 would damage business, in particular relationships with significant customers.
  • Prior to this case, trucking companies that entered bankruptcy were liquidated.

 

Restructuring Services:

Capstone’s restructuring team provided the following services during the course of the case:

  • Assisted the Secured Lenders with DIP financing as the Company voluntarily filed for Chapter 11 bankruptcy protection in January 2009 and engaged in a 363 sale process.
  • Monitored business operations and assisted the Secured Lenders in evaluating the Company’s long-term business plan.
  • With counsel, assisted the Senior Lenders in “credit bidding” a substantial portion of their debt to buy the Company out of bankruptcy under the 363 process.

 

Outcome:

Ultimately, the Chapter 11 did not damage the business due to careful planning and execution of a bankruptcy strategy.  The credit bid process resulted in the Senior Lenders owning the Company and investing additional capital to get the Company back to health post-emergence.  The Company recently announced its first acquisition with the help and funding of the current bank group who are the current owners.