Winter Harbor LLC

Mid-States Supply Company

Oil and Gas Equipment Fabricator Faced With Financial Challenges

 

Mid-States Supply Company (MIDCO) is a fabricator of pipes, valves, and fittings for the oil, gas and food industries. They are a manufacturer of bypasses, meter sets, launchers, traps, extensions, pumps and valves. In addition to fabrication, they provide maintenance and modification services to their customers. MIDCO generates $300 million in annual revenue.

Our Role

Winter Harbor was commissioned as Chief Restructuring Officer, as MIDCO was faced with financial challenges.

  • Managed cash outflows including payroll, inventory purchases, and operational outlays.

  • Restructured Company to 22 locations, concentrating premier customers.

  • Explored recapitalization opportunities including equity investors, mezzanine debt, and sale of aged inventory.

  • Marketed the Company for purchase and negotiated with vendors to keep the organization out of bankruptcy.

  • Worked the organization through bankruptcy including preparing DIP budgets, SOFA/SOAL, and miscellaneous schedules.

  • Facilitated the sale of the Company to a stalking horse bidder in bankruptcy by helping firms with due diligence and working with all the parties involved including the secured and unsecured creditors.

  • Managed the estate post sale to finalize the process.

Engagement Outcome

Mid-States Supply Company required restructuring services focused on improving their financial performance. As Chief Restructuring Officer, we explored recapitalization opportunities including equity investors, mezzanine debt, and sale of aged inventory. Ultimately, the Company was sold to a private equity firm as a going concern out of bankruptcy.