Case Studies: Clark Material Handlings

Clark Material Handlings

€250m – Forklift trucks

Areas of operation:      

The German subsidiary of a large US company in Chapter 11 had experienced significant operational problems caused by vendor disruption resulting from the parent company filing. The German company had recorded a negative EBITDA of $3.1 million in a quarter and was close to insolvency.BM&T Principals worked as both CRO and Treasury managers alongside the company management to improve production flow, reduce inventories and improve cash flow and vendor confidence. The company was restored to a positive quarter EBITDA of $1.1million. Subsidiaries in Spain and France were downsized and disposed of to generate cash. German operating costs were substantially reduced. BM&T Principals worked with the company’s legal advisors to manage the company through German potential over-indebtedness issues. Actions to stabilise and maintain continuity of the European operations were a vital contribution to the eventual sale of the USA business.

Company Doctor's Diary

Notes, insights and reflections from Matthew, one of our directors and turnaround experts, as he works with companies during Lockdown.