Lender Concurs with Appraisal; Company Emerges from Chapter 11 with Loan
Client: Major North American Car-Hauling Company
Challenge: Value Assets Located at 80 U.S. and Canadian Sites
The parent company of a group of subsidiaries that distribute and transport new and used vehicles for the United States and Canadian automotive industry was operating under Chapter 11 bankruptcy. Like many companies that support that industry, the car hauler was a victim of higher labor and fuel costs, as well as a decrease in delivery volume from the major North American carmakers. During its reorganization under the Chapter 11 process, the company negotiated better financial terms with its union contracts and customers, and worked on reducing its debt burden. To back an asset-based loan, the company's lender asked AccuVal to appraise the fleet for its liquidation and fair market value.
AccuVal Approach
With the company's fleet of 3,500 rigs spread over more than 80 locations across the United States and Canada, AccuVal – working with the lender – sampled inventory in nearly two dozen locations to identify and document the running fleet. The firm organized the equipment listing in a form the lender could use to determine the assets' fair market and liquidation value. The company later used AccuVal's fair market value in its 10-K statement filing.
Bottom Line: Lender Concurs With Valuation; Company Ultimately Sold
The new lender was satisfied that the company's valuation supported backing for the loan. Ultimately, an investor group purchased the car hauler's equity.
The AccuVal AdVantage™
A global reputation for asset-based lending expertise. Experience with the international automotive business. A name recognized by international investors, money-center banks, venture capitalists and financial syndicators. That's The AccuVal AdVantage™ at work.
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