Rubber Wholesalers Inc. – This Georgia-based manufacturer of recycled rubber products had been operating in chapter 11 for six months, following a substantial drop off in revenue. With no realistic plans to reorganize and the secured creditors pushing for a liquidation, SC&H Capital was retained and given 60 days by the bank to secure alternative options.
Within 60 days, SC&H’s process generated more than 95 interested prospects, 22 of which traveled to the plant in Georgia to conduct diligence and meet with management. Four groups eventually participated in an auction and the business was sold to a buyer at a price that far exceeded any liquidation estimate. Operations continued in place with minimal disruption and the buyer assumed many trade payables and employed the prior owner and senior management team.