TransCom, USA

Client

Transcom, USA was a $300 million reseller of replacement parts serving the heavy truck aftermarket. The Company was formed primarily through acquisition of smaller independent distributors.

Challenge

As a result of several acquisitions, the Company had accumulated substantial debt and faced a severe liquidity crisis. Operating results were well below plan. As a result, the Company engaged Bridge as Crisis Manager.

Solution

Bridge developed and evaluated several restructuring scenarios. The Company was unable to generate sufficient cash flow to service its existing debt or a modestly restructured debt load. As a result, the Bridge team prepared the Company for bankruptcy filing to enable a sale of substantially all assets.

Results

The sale of substantially all operating assets resulted in approximately $44 million for creditors. Bridge continues to manage the remaining business affairs, including reconciling filed claims and pursuing potential preference actions.