Winter Harbor LLC
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new American Food Products

 

New America Food Products (AFP) is a New England-based re-bagger of bulk candies, nuts and snacks. AFP imports their snack products in bulk, weighs, measures and re-films the products to be sold by food retailers. AFP supplies to both private-label and public retail brands, creating customized package options for product resale. AFP generates close to $40 million in revenue each year.

Situation

AFP was unable to support its current debt load and sought immediate restructuring and turnaround solutions. It had recently defaulted on its creditor loans attributed to AFP surpassing their margined borrowing base. A comprehensive business assessment and evaluation of strategic options was requested by AFP.

Scope of Work

Winter Harbor served as chief restructuring officer, reporting to AFP’s board of managers. Our professionals:

  • Conducted full business assessment, evaluating existing financial and operational condition.

  • Prepared data analyses including cash forecasts, liquidation analyses, and short- and long-term financial forecasts.

  • Evaluated strategic alternatives available to the Company.

  • Managed cash flows, claims pools and estimate creditor recoveries.

  • Managed negotiations with key vendors and creditors.

  • Advised the Board on all restructuring matters.

  • Led research and due diligence process for selecting strategic buyer.

Engagement Outcome

As chief restructuring officer, Winter Harbor provided agreeable acquisition terms to all parties and maintained status quo. Within 45 days of hire, Winter Harbor was able to assess business operations and develop an evaluation to be presented to potential bidders, without the involvement of a financial third-party. Acquisition offers were made by two strategic buyers. AFP selected the stock sale option and was able to conserve operations under the new purchase agreement and fulfill all debt obligations of their capital providers and vendors.