Background

The second largest national electrical contractor ran into financial trouble with numerous projects in process throughout the United States. Supplier’s bills needed to be paid and cash flow had come to a halt. The financial exposure for the construction surety and the contractor’s lenders was huge.

The Solution

We were retained by the construction surety to process payment bond claims and to help steer the contractor to a successful conclusion. A Loan and Security Agreement was drafted and approved by the United States Bankruptcy Court for the Southern District of New York. All parties worked in collaboration to keep the contractor alive as it shed old debt and completed open projects while substantially shrinking its project inventory.

The Result

The contractor was able to survive the bankruptcy proceeding and remain in business with the surety substantially reducing its ultimate financial exposure.