Winter Harbor LLC

USFibers

Fiber Manufacturer Implements Internal Controls Focused on Reporting

 

USFibers is a manufacturer focused on specialty fibers for high margin consumers, such as the automotive market. USFibers sells polyester stable fiber made from blending resin or using recycled polyethylene terephthalate (PET) post-industrial and post-consumer plastics (scrap/waste). USFibers produces $45 million in annual revenue.

Our Role

Winter Harbor was engaged by USFibers’ senior lender to perform a comprehensive business assessment. Our focus was on testing the viability of USFibers’ cash flow forecast and its compliance with existing financial covenants.

  • Evaluated and advised on action steps related to specific functional areas and processes including forecasting, inventory reporting & controls and procurement to address forecast accuracy, collateral assessment and borrowing base availability concerns.

  • Analyzed the achievability and provide actionable steps regarding major initiatives in financial forecast provided by management (cost reduction, sales growth, etc.).

  • Conducted interviews with and obtained information from the Company’s executives and staff including on-site review of the Company’s operations.

  • Reviewed available products and internal data; Analyzed and performed review of the historical results from operations and select financial and operating performance information.

  • Reviewed findings and conclusions with executive management; recommended next steps.

Engagement Outcome

Winter Harbor provided detailed analysis of the financial forecast as well as internal controls that led to a $1 million miss in its recent bank collateral audit. Internal controls were put into place for reporting, and next steps were provided in order to realize liquidity. The Company continued to see success with its automotive sales. Winter Harbor successfully worked with the Company and its lender to work through liquidity and reporting concerns and re-establish availability under its current ABL.