TransCom, USA

Client

Transcom, USA was a $300 million reseller of replacement parts serving the heavy truck aftermarket. The Company was formed primarily through acquisition of smaller independent distributors. Included in its service lines were distribution outlets for heavy truck parts in the United Sates and Mexico, ownership and operation of 6 Mack Truck sales and leasing franchise outlets, brake component manufacturing, manufacturing and installation of oil field services truck components and finished vehicles.

Challenge

As a result of several acquisitions, the Company had accumulated substantial debt and faced a severe liquidity crisis. Operating results were well below plan. As a result, the Company engaged Bridge as Crisis Manager. To assist in restructuring the Company, stabilize relationships with the senior lenders and primary vendors and identify solutions to maximize value.

Solution

Bridge developed and evaluated several restructuring scenarios. The Company was unable to generate sufficient cash flow to service its existing debt or a modestly restructured debt load. As a result, the Bridge team prepared the Company for bankruptcy filing to enable a sale of substantially all assets and engaged an investment banker to market all of the non-core (non-parts distribution assets). Bridge undertook the sale of all core truck parts distribution assets.

Results

The sale of substantially all operating assets resulted in approximately $44 million for creditors. Working with a post-confirmation trustee appointed by the Creditors’ Committee to manage the Debtor’s affairs, Bridge was charged by the senior lenders with liquidating their remaining collateral, including reconciling filed claims and assisting the Trustee in pursuing potential preference actions..