Dee Howard Aircraft Maintenance

Client

Dee Howard Aircraft Maintenance, LP was a large aircraft maintenance and modification facility serving the commercial and freight airline markets with annual revenue of approximately $60 million.

Challenge

Poor operating results and substantial capital expenditures placed significant debt on the Company. This resulted in a severe liquidity crisis.

Solution

A Bridge team assumed the office of CEO. The team performed a thorough process value analysis, greatly enhanced cash management processes and worked with current customers to identify areas for revenue enhancement. After stabilizing operations, Bridge performed an overall business assessment. The team determined that cash flow from operations was insufficient to service the substantial debt. The Bridge team developed multiple restructuring scenarios, which revealed that the highest return to creditors could be accomplished through a sale of substantially all operating assets. As a result, Bridge managed the sale of the Company's assets through the bankruptcy process.

Results

Based on these analyses, Bridge implemented a number of cost reduction initiatives and cash controls to manage the liquidity crisis. Bridge managed the sale of substantially all assets for $14.2 million. The sales process was completed on an expedited basis within a 10-week period. Return to creditors was substantially increased. After the sale, Bridge continued to pursue preference actions, reconcile claims and manage the wind down of the remaining business affairs of the estate.