Web Printing Controls Co., Inc. – This Illinois designer and manufacturer of real-time, closed-loop automation equipment saw their lender drastically reduce the eligibility of their collateral. At the same time, orders had dropped significantly and, thinking it was a short-term problem, the company relied heavily on their line of credit to fund operations. The bank debt increased significantly, and the loan was eventually sold to another institution with no prior relationship or understanding of the business. This new lender pushed for a liquidation and SC&H Capital was retained to find an alternative.
The secured creditor agreed to extend the forbearance agreement and allow SC&H to complete its marketing process. SC&H quickly generated significant interest in the company and successfully negotiated an offer, selected from multiple going concern bids. The value of the bid far exceeded any liquidation estimate and the transaction closed without a single day of interruption.