Winter Harbor LLC

New Horizons Bakery

Forbearance agreement issued as replacement financing is located

 

Founded in 1967, New Horizons Baking Company produces bakery items for quick service restaurants and national retail sandwich makers. Their product line includes soft rolls, English muffins, buns, and breads. Their clients are located in the mid-western region across Ohio, Kentucky, Indiana, Michigan, and Western Pennsylvania. In addition, New Horizons Baking Company operates Metraco, the transportation company responsible for handling the logistics and delivery of its bakery items. New Horizons produces $100 million in revenue.

Situation

Scope of Work

Winter Harbor was engaged to provide New Horizons with assessment services related to its financial forecast.

  • Developed a weekly cash flow model and monthly budget.

  • Provided weekly cash flow monitoring.

  • Assisted management in developing alternatives to manage through a stabilization period.

  • Led negotiations with lenders in connection with an amendment of existing obligations.

Engagement Outcome

Prior to the engagement, Dynatech International failed to meet its obligations with its lenders due to poor performance.  Winter Harbor was consulted to assist Dynatech with identifying key performance indicators and monitor their monthly cash flow.  We determined that Dynatech was experiencing poor performance due to their high fixed costs, slow moving inventory, procurement delays, high customer concentration and limited backlog.  In turn, Dynatech completed a successful refinancing, with existing loans being paid in full.