Hamon Corporation

Client

Hamon Corporation was the U.S. subsidiary of a European-based public construction company serving the power generation industry. The Company's annual revenues were approximately $300 million.

Challenge

Declines in construction of new power generating stations during 2002 and 2003 dramatically reduced revenue and corresponding income. The Company faced a liquidity crisis and a steep increase in debt.

Solution

Bridge provided a financial restructuring team to help the Company evaluate strategic options for solving the liquidity crisis, including evaluating potential in- and out-of-court debt restructurings.

Results

The Bridge team was able to obtain financial commitments for $10 million, which ultimately were not required due to improvements in operating results. This, coupled with certain out-of- court unsecured debt restructuring, enabled the Company to avoid a Chapter 11 bankruptcy filing, and the owners to retain control of the Company.