Out-of-Court Restructure:

Magazine/Catalog Printing Company


A national magazine/catalog printing company, with production presses in Mississippi, Nebraska, Texas and Georgia, was failing to meet its required loan covenant performance targets.

The lender required that the Company hire a turn-around manager, one of Aspen’s Affiliates. The turn-around team worked closely with both financial and production managers to resolve vendor stalemates, e.g., paper but no ink, as well as to discover the cause of the deteriorating financial performance, most conspicuously the failure to reconcile printing cost estimates to actual costs incurred. Plans to consolidate the equipment from one of the printing locations into another were developed, and stopped just short of execution. For many reasons, including declining trust between the lender and the company’s principal owner, the creditor elected to foreclose on its assets and assert its control of all the collateral. Employees were terminated. A number of union contract and senior management compensation issues were resolved. The lender took possession of its physical assets and hired new managers who in turn rehired many of the former employees. No Court proceedings were involved. The plants were eventually sold; the Mississippi location in particular thrived under its new ownership.