COURT: Erickson judge grants interim approval of DIP financing, operational motions at first day hearing

As first reported in Debtwire10 November 2016 | 17:12 EST

The bankruptcy judge overseeing the Chapter 11 case of Erickson Inc today approved the company’s first day motions, including use of its two debtor-in-possession (DIP) financing facilities.

Judge Harlin “Cooter” Hale of the US Bankruptcy Court for the Northern District of Texas approved the helicopter services provider’s motions to pay employee wages, cash management and retention of Kurtzman Carson Consultants (KCC) as claims agent. The judge did not set a “second day” hearing for final approval of today’s motions.

Erickson filed for Chapter 11 on 8 November with USD 66.67m in term loan DIP financing from its second lien lenders and another DIP from its first lien lenders that will partially roll up USD 130m in first lien debt. The DIP requires the company to confirm a reorganization plan by 7 April 2017. Debtor counsel Kenric Kattner of Haynes & Boone said today that the company is taking a three-pronged approach to its reorganization: reduce costs, restructure its balance sheet and determine what, if any, aircraft leases it will reject.

The company met resistance to its DIP financing from the office of the US Trustee, who took issue with a provision that would have the company make a USD 14.2m payment to perform under a contract with Military Sealift Command, the transportation provider for the US Department of Defense. The trustee said that the debtor had not taken the proper steps to make the payment, and that the company was essentially assuming a lease on the first day without actually filing a motion to do so.

The parties broke this afternoon to negotiate and returned with an agreement that will approve the DIP on an interim basis, though the details of the deal were not revealed.

The term loan DIP comes from holders of the company’s USD 355m 8.25% second lien notes due 2020, while Wells Fargo is agent on the first lien debt and the revolver DIP. The financing requires the company to win final DIP approval by 12 December, confirm a Chapter 11 plan by 7 April and put a plan into effect by 17 April.

The 8.25% notes last traded today at 37.75, down from 44.5 a month ago, according to MarketAxess.

LM+Co Featured in May Edition of Acquisition International

In an exclusive interview with Acquisition International, Managing Directors Richard Zytkowicz, Patrick Fodale and John Krupar provide their views on turnaround management an corporate renewal.

The interview, published in the May 2016 issue of the magazine, discusses the importance of  turnaround management in today’s business world, the importance of having the right team of turnaround professionals and the challenges that industry faces in 2016 and beyond.

For further information on LM+Co’s Turnaround and Restructuring Practice, Click Here

To read the full interview featured in Acquisitiion International, Click Here

LM+Co’s John Sordillo Featured in Lawyer Monthly

In an exclusive interview with Lawyer Monthly, Managing Director John Sordillo provides his views on the issues and challenges that can arise during the turnaround management process.

The interview, published in the February 2016 issue of the magazine, discusses the importance of timing when introducing a turnaround manager, the steps that can be taken to effectively ward off insolvency and how to navigate the common challenges that turnaround professionals face.

John has been active in the turnaround and restructuring advisory arena for more than two decades, serving in a number of diverse roles, including distressed corporate finance advisor, turnaround advisor and principal investor in distressed companies. His in-depth expertise in the field provides a unique perspective on how companies, and their stakeholders, can manage a tightening credit market as financial recovery continues to pick up pace.

For further information on LM+Co’s Turnaround and Restructuring Practice, Click Here

To read the full interview featured in Lawyer Monthly, Click Here

Houston Business Journal: New York financial firm to target volatile energy market with new Houston office

New York-based Loughlin Management Partners + Co. recently announced it would open an office in Houston, and for its managing director, it’s a bit of a homecoming.

James Loughlin is a Houston native and Southern Methodist University graduate. He decided to open the Houston office to consolidate area employees, as well as capitalize on the volatile energy market.

The firm, which will only have between two and five employees working in the Houston office initially, will primarily focus on corporate restructuring, mainly in energy but in other industries as well, Loughlin told the Houston Business Journal.

The firm also works with private equity companies, banks and corporate finance.

“We’re probably approaching a broader restructuring cycle than just energy. There will be opportunities to go beyond the energy space, although thats where the headlines are today,” Loughlin said.

Specifically, those other opportunities include the health care and retail industries. For example, in health care, reimbursement rates from third-party payers to health care systems have shifted, causing the industry to readjust its business model. Eventually, that will cause health care companies to restructure.

In terms of a national growth strategy, Loughlin doesn’t have any specific plans. But with clients all over the country, eventually an office on the West Coast eventually could be considered.

Click Here for full article

LM+Co Expands to Houston with Regional Office to Better Serve Clients

New York, NY, January 12, 2016– Loughlin Management Partners + Co., an industry leader in restructuring, private equity advisory and corporate finance, has established a regional office in Houston, Texas. Recognizing the impact of volatility in global energy markets on companies, their investors and key stakeholders, the firm is committed to providing its financial and operational expertise to clients in the region. The new office is located at 770 Milam Street, Suite 1300, Houston, TX 77002.

James J. Loughlin Jr., Managing Director and Principal, welcomed the company’s plans for continued expansion into the Texas market.

“We have always been active in Texas and the Southwest. We have had multiple projects over the past few years in Dallas, Louisiana, Oklahoma and Houston. Many of us are from Houston and we couldn’t be more pleased to establish a more permanent presence here at a time when the local market can benefit from our restructuring and capital raising capabilities.”

About Loughlin Management Partners + Co.

LM+Co has distinguished itself for more than a decade by tackling complex situations and implementing the right solutions to maximize value for our clients. Our operational capabilities, processes and people in conjunction with our established credibility with the financial community allows us to greatly enhance our client’s ability to succeed.


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If you would like more information about this topic, please contact Susan Broshek at 212-340-8420 or email at [email protected]

LM+Co Capital Completes Successful Recapitalization of Weaber Lumber

Press Release

LM+Co Capital Completes Successful Recapitalization of Weaber Lumber

New York, NY – July 29, 2015 – LM+Co Capital, a leading New York-based middle market investment banking firm, has announced the successful recapitalization of its client Weaber, Inc. (“Weaber”), based in Lebanon, Pennsylvania, by Matthew G. Weaber, CEO and grandson of the Company’s founder, thereby transitioning the controlling interest in the Company back to the Weaber family. Cleveland-based Cyprium Partners, a private equity firm focused on making non-control investments, supported Mr. Weaber in the recapitalization of the Company.

Weaber is a leading producer of high quality hardwood products including Oak flooring, Poplar and Oak moulding, finished trim boards, plantation shutter louvers, and hardwood stair components which are sold throughout the country to pro-contractor yards, specialty flooring distributors, building products wholesalers and various other outlets.

According to Rick Zytkowicz, Managing Director with LM+Co Capital, “On behalf of LM+Co Capital, we are delighted for Matt and his family as he embarks on the next chapter of the Weaber legacy. Matt is a very successful CEO with a proven track record in the Building Products Industry. In partnership with Cyprium Partners, I believe the company is poised for much success and additional growth opportunities. We are honored to have been involved in such an exciting transaction”.

Matthew G. Weaber, President and Chief Executive Officer, commented “This is an incredibly exciting time for my family and our employees. As a result of this transaction, our business is well-positioned for substantial growth in the industry and will allow us to better serve our customers and our community. As a testament to our management team, market strategy and strategic focus, the Company has attracted an experienced investor group in Cyprium Partners who we believe are committed to supporting our Company for the years to come. Further, I cannot say enough about LM+Co Capital and in particular, Rick Zytkowicz. Without his commitment and tireless effort to structure and source the right capital partner for my family’s business, I am not sure we would have been able to consummate this transaction”.

About Weaber, Inc.

The Company was founded in 1941 by Walter H. Weaber.  Walter’s son Galen later took over the business and grew the company into a leading U.S. value-added processor of hardwood products for use in residential repair and remodel (“R&R”) throughout the United States and Canada.

In addition to its state-of-the–art sawmill, Weaber has extensive processing and finishing capabilities that enable it to produce a wide range of lumber products, including surfaced four sides (“S4S”) boards, flooring, moulding, stair parts, finger-jointed products, edged glued products and kiln-dried lumber from Oak, Poplar and other hardwood species. Weaber utilizes sustainable environmental practices to source its lumber locally from the Appalachian Mountain region.

About LM+Co Capital

LM+Co Capital, a registered broker dealer and member of FINRA/SIPC, is solely focused on the middle market. LM+Co Capital “LMCC”,  provides investment banking and advisory services to corporations, investors, private equity groups and business owners. LMCC offers its clients years of experience in Mergers + Acquisitions, Capital Advisory, Financial Restructuring and Business Valuations. LMCC is an independently operated affiliate of Loughlin Management Partners + Company “LM+Co”, a multi-disciplinary professional services firm focused on the middle market.  In Private Equity Value Creation, Turnaround + Restructuring and Corporate Finance, LM+Co has distinguished itself with management teams and investors for more than a decade by focusing on actionable solutions across a broad range of industries, and delivering results that maximize value.

About Cyprium Partners

Cyprium Partners (Cyprium) is a private investment firm that makes non-control investments in profitable middle-market companies, allowing company owners and their management teams to retain controlling interest in their business after it invests. Cyprium strives to be a value-added investor that supports the growth, acquisition, refinancing or liquidity needs of private company owners and their management teams. Specifically, it looks for companies that prefer an informed investor; one who has the capacity to provide creative solutions for strategic, operational and financial challenges. The partners of Cyprium established its first investment vehicle in 1998 and are now investing from its fourth fund. Investors include pension funds, insurance companies, financial institutions, funds-of-funds, family offices and entrepreneurs who the firm has backed in previous investments. Since 1998, the firm has made 71 investments totaling over $1.1 Billion in capital.

LM+Co proud to sponsor OGIS New York 2015

Loughlin Management Partners is proud to sponsor and participate in the Independent Petroleum Association of America’s 21st Annual Oil & Gas Investment Symposium New York.  There is no better way to stay connected with the major companies and investors in the Oil & Gas industry than this outstanding event.  We look forward to not only reconnecting with our contacts in Oil & Gas, but also making new connections as we continue to grow our practice in this dynamic industry.

Learn more about OGIS New York 2015