Restructuring Plan Development and Implementation
SAYERS AND
ASSOCIATES
Sayers was a $100 Million mechan-
ical contracting company, working
on large commercial construction
projects across Canada. The com-
pany had gone through a period of
significant reductions in new con-
tract work and there were increas-
ing holdbacks and lien claims on
jobs and defaults in bonding agree-
ments. Certain parts of the busi-
ness were underperforming and
management was not functioning
as effectively as needed. All of this
resulted in cash flow deficiency
and increasing covenant defaults
with the company bank and bond-
ing company. As well, there was
an out-of–trust situation which the
company was struggling with get-
ting under control and informing
its bank. All of this led to a loss of
confidence of the major stakehold-
ers.
Fred, Chris and Scott Sayers com-
mented, “You quickly learned all as-
pects of our organization and devel-
oped sound strategies that helped
us to re-focus on our profitable core
business segments. Your ability to
roll up your sleeves and work effi-
ciently with our management team
and staff helped us execute more
efficiently and effectively. Your
leadership in dealing with our bank
and other key stakeholders allowed
us to maintain their confidence
through the restructuring process.
Your management of the divesti-
ture of a major division was a key
driver in our overall plan.”
Don led the implementation of the
restructuring plan, monitoring and
reporting on milestone results. A
major division was sold, expens-
es rationalized and management
changes made. The hold backs,
liens and out-of trust position were
brought under control. The secured
lender was paid down and eventu-
ally repaid and the bonding com-
pany deficiency was rectified. This
successfully completed restructur-
ing resulted in a turnaround of the
company and continued relation-
ship with its bank.
DA Don
Allen
& Associates Inc.
Toronto · Barrie · Collingwood
1-888-504-1511
www.djallen.ca