• EBITDAR improved
  • DIP paid off
  • Creditors were paid in full, equity holders ownership

The company was the largest integrated chicken producer in North America with 25% of the market share and over 45,000 employees. With over $2.5B in debt and after lost $300MM of EBITDAR, CR3 professionals served as CRO and assisted led the company through numerous operational efficiency initiatives. EBITDAR improved from $300MM to nearly $700MM, the $190MM DIP loan was paid off within five months, an exit-financing facility of $1.7B under one bank group was obtained, and a sponsor of the Plan of Reorganization injected $800MM for 64% of reorganized entity. The company generated an additional $250MM of cash by the time it emerged from bankruptcy - upon emergence, all pre-petition creditors were paid in full (par plus accrued interest) and old equity holders retained 36% of the reorganized entity.

The Situation

  • Largest integrated chicken producer in North America with 25% of market share and over 45,000 employees
  • Company had over $2.5B in debt and lost $300MM of EBITDAR
  • Sought advisors to implement an operational-improvement plan to increase efficiencies and reduce costs during a court-supervised restructuring and to create and support a Plan of Reorganization upon emergence from bankruptcy

The Work

  • Retained to serve as CRO, assisting new management team with numerous operational efficiency initiatives
  • Changed the company’s culture and supply-chain focus from primarily production-driven to customer-focused and demand-driven
  • Helped create more value-added prepared food products to offset the sales of less profitable commodity chicken meat
  • Developed operational-turnaround plan consisting of lean manufacturing
  • Closed seven complexes, reducing headcount by 14,000 FTEs and severed agreements with 1,000 contract growers
  • Sold non-core assets, negotiated favorable union contracts, rejected unfavorable leases, and created alternative dispute-resolution process to estimate litigation claims
  • Helped engineer a timely plan to emerge from Chapter 11

The Results

  • EBITDAR improved from $300MM to nearly $700MM the following fiscal year
  • $190MM DIP loan was paid off within five months
  • Exit-financing facility of $1.7B under one bank group was obtained
  • Sponsor of the Plan of Reorganization injected $800MM for 64% of reorganized entity 
  • Company generated additional $250MM of cash by the time it emerged from bankruptcy - upon emergence, all pre-petition creditors were paid in full (par plus accrued interest) and old equity holders retained 36% of the reorganized entity

Explore Insights

View All
Unconventional Interim Management Approach Leads to Profitable Exit
Article

Unconventional Interim Management Approach Leads to Profitable Exit

Sometimes an unconventional approach validates an uncommon way of thinking. When an organization seeks interim management, it is typically distressed. A new CEO is named, and restructuring commences with the goal of continued operations or an exit.

Read More
When and Why Should You Hire an Interim Manager?
Article

When and Why Should You Hire an Interim Manager?

How do a management team and Board of Directors know when to engage an interim manager, and how do different situations determine the type of interim manager they should hire?

Read More
CR3 Partners Named to Consulting Magazine list of Best Small Consulting Firms 2021
Video

CR3 Partners Named to Consulting Magazine list of Best Small Consulting Firms 2021

CR3 Partners was recently named to Consulting Magazine's list of Best Consulting Firms to Work For. It is an honor to be part of this distinguished list of companies.

View Video
CR3 Partners Honored with M&A Advisor Award
News

CR3 Partners Honored with M&A Advisor Award

CR3 Partners announced that the firm received the Award for "Restructuring of the Year ($10MM to $50MM)" by M&A Advisor in the "Chapter 11 Reorganization Award" category.

Read More
Learn How Fraud and Valuation Matters are Handled During Bankruptcy
External Link

Learn How Fraud and Valuation Matters are Handled During Bankruptcy

Dallas-based Partner Sugi Hadiwijaya recently teamed up with Jermaine Watson at Bonds Ellis on a podcast highlighting basic aspects of how fraud-related matters are managed in a bankruptcy context. Listen to the full podcast brought to you by AICPA's Forensic and Valuation Services Section.

View
The JCPenney Bankruptcy: An inside view from a shareholder perspective
External Link

The JCPenney Bankruptcy: An inside view from a shareholder perspective

Reed Smith's Keith Aurzada joins William Snyder and Dawn Ragan, both of whom served as financial advisors to the equity committee in the JCPenney case. Our speakers explain the valuation of JCPenney assets and how restructuring support agreements shaped this case.

View
CR3 Partners Adds New Service Offering and Continues  to Expand
News

CR3 Partners Adds New Service Offering and Continues to Expand

CR3 has appointed new Partner Suzanne Roski to expand and lead this practice in our new Richmond office. Suzanne's background includes over 35 years of professional experience with troubled companies, litigation, forensic investigation, and valuation consulting.

Read More
CR3 Partners Expands Los Angeles and Houston Offices
News

CR3 Partners Expands Los Angeles and Houston Offices

CR3 Partners is proud to announce the expansion of its rapidly growing Los Angeles office by adding two Senior Associates, Alex Pettee and Ashtynn Baltimore. Along with the additions to the Los Angeles office, CR3 Partners would also like to announce its new Director, Avery Alcorn out of the Houston office.

Read More
How Much Capital Do Companies Need for Post-COVID Recovery, and Who Will Provide It?
Article

How Much Capital Do Companies Need for Post-COVID Recovery, and Who Will Provide It?

CR3 Partners' clients and referral sources agree that additional capital will be needed to return operations to the "new normal" after COVID-19. But how much capital will they need, where will it be deployed, and who will provide it?

Read More
CR3 Partners Honored with Two M&A Advisor's Awards
News

CR3 Partners Honored with Two M&A Advisor's Awards

Led by Dustin Lough, the engagement team for The NORDAM Group, a large international aerospace company, received the Restructuring of the Year ($250MM to $500MM) award as advisors to the lending group leading up to and including the Chapter 11 bankruptcy proceeding.

Read More
CR3 Partners Opens Los Angeles Office and Adds New Partner
News

CR3 Partners Opens Los Angeles Office and Adds New Partner

CR3 Partners is delighted to announce that Tim Skillman has joined as a Partner of the firm and will be heading the new CR3 Partners Los Angeles office.

Read More
CR3 Partners Honored with Two Turnaround Atlas Awards at 2019 Global M&A Network Annual Gala
News

CR3 Partners Honored with Two Turnaround Atlas Awards at 2019 Global M&A Network Annual Gala

CR3 Partners is pleased to announce that the firm was awarded two Turnaround Atlas Awards on May 20, 2019 at the Global M&A Network Annual Gala.

Read More
CR3 Partners Expands Chicago Team
News

CR3 Partners Expands Chicago Team

CR3 Partners is pleased to announce that Tim Shanahan has joined the CR3 Partners team and will be based in its Chicago office.

Read More
New Partner and Two More Executives Receive CTP Designation
News

New Partner and Two More Executives Receive CTP Designation

The CR3 Partners Board of Managers is delighted to announce that James Katchadurian has been promoted to Partner with the firm.

Read More
CR3 Partners Advises NEOPS Alongside SSG Capital on Sale of Debt
External Link

CR3 Partners Advises NEOPS Alongside SSG Capital on Sale of Debt

SSG Capital Advisors, LLC (SSG) acted as the investment banker to New England Orthotic & Prosthetic Systems, LLC and its affiliates in the sale of all of its outstanding senior debt to AHM Healthcare Strategies (AHM), an affiliate of Eschen Prosthetic and Orthotic Laboratories, Inc. (Eschen).

View
CR3 Partners Honored with Turnaround Award at 12th Annual Gala by M&A Advisor at 2018 Distressed Investing Summit
News

CR3 Partners Honored with Turnaround Award at 12th Annual Gala by M&A Advisor at 2018 Distressed Investing Summit

CR3 Partners, a Dallas-based national turnaround and performance improvement firm, today announced that the firm was awarded a 2018 Turnaround Award for "Ch 11 Reorganization of the Year for ($25-100MM)" by M&A Advisor in the "Chapter 11 Reorganization Award" category.

Read More
Industry Veterans Combine to Launch National Turnaround and Performance Improvement Firm
News

Industry Veterans Combine to Launch National Turnaround and Performance Improvement Firm

The leadership of CR3 Partners, LLC, today revealed the details of their newly-formed national turnaround and performance improvement firm.

Read More
Contact Us

CONTACT US

Do you have any further questions? How can we help you? Get in touch with us.

CONTACT US