The company, a manufacturer of custom designed thermoformed plastic packaging products for the food, electronic, and retail industries, was having cash flow issues due to increased material costs, stagnant sales, manufacturing variances and under-utilization of facilities and personnel. Their revolver was maxed out and their secured lender had was dissatisfied with the company’s ability to accurately forecast cash flow and timely report/analyze performance. This contributed to a lack of faith in their turnaround plans and caused the bank to consider foreclosure.
Manufacturer of thermoformed plastic packaging products
