The Company

ES Steel

This Maryland-based metals distributor and steel fabricator was consistently losing money and was in default on its loans because of the weak economy.

The Challenge

One of the owners was the president of the company and he desperately wanted to retain his management position and secure an opportunity to rebuild the company.  We put together a plan whereby we would test the market for an equity infusion, refinancing, joint venture or a sale in the entirety and demonstrate to the bank which option was best.  When we explained our plan to the bank, they agreed to forgo any further action until they saw the results of our process.

The Process

Equity Partners was retained and ran our marketing and sales process, resulting in 44 parties executing confidentiality agreements and evaluating the company.  We uncovered an equity partner who agreed to infuse cash into the company.

The Solution

By turning over every stone, communicating weekly with the bank so they could follow the process, building trust in the company,  and finding an equity partner, we were able to demonstrate that  restructuring was a viable option. The bank agreed to restructure, the company had access to much needed cash, giving the owners a chance to rebuild the company and strengthening the credit significantly.