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Case #435
$50 million national
farm and feed distributor/retailer
This national feed and farm supply distributor
and retailer averaged $50 million in revenue with six retail
stores in the Northwest and 5 distribution operations in the
Central states. Even with a positive contribution to the equity
for three consecutive years, the company still had a negative
equity position and was unable to meet the loan covenants
that gave the lender the need to get out of the loan.
Morris-Anderson & Associates was brought
in to stabilize the situation with the lender and client,
and work out a cash-flow strategy. The crew immediately started
looking for a new lender as we opened up communications and
restored credibility between all parties (lenders, management
and suppliers).
A new lender was on board 7 weeks after stabilization.
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