Featured Transactions*
Fruehauf de Mexico
Based in Mexico City, Fruehauf de Mexico (FdM) is the largest manufacturer of class 8 semi-trailers in Mexico. The Company is the last operating asset of a liquidating trust formed in 1998 pursuant to the Chapter 11 plan of reorganization of Fruehauf Trailer Corporation.
Libra served as financial advisor to the Company and the Trust in connection with the sale of FdM. Libra was faced with the challenge of attempting to sell a company based in Mexico that had been neglected and capital starved. Rather than sell the Company at a distressed value, Libra devised the strategy to distribute the Company directly to the Trust’s beneficial holders thereby reducing the tax impact and maximizing the recovery value to the creditors of the original bankruptcy. This process provided the creditors with the opportunity to rebuild the Company and reestablish its original value.
Chevys Fresh Mex
Based in Alameda, California, Chevys is a chain of 37 Mexican casual restaurants featuring fresh, authentic Mexican fare. On October 10, 2003, the Company filed voluntary petitions to reorganize under Chapter 11 of the Bankruptcy Code.
Libra was retained to provide a valuation of the Company in order to assist in the formulation of a plan of reorganization. The challenge was to develop a proper valuation in light of deteriorating operating performance and a bankruptcy filing. Libra was able to normalize the operating results and provide the Company with an appropriate valuation. Libra’s work assisted the Company in forging a consensus among its creditors which was the basis for a plan of reorganization.
Fantastic Sams
Based in Orange County, privately held Fantastic Sams is the second largest hair salon chain in the U.S. Fantastic Sams is part of a three-tiered franchise system in which Opal Concepts is the master franchiser. Opal Concepts, which also owns ProCuts, Jose Eber and Carlton/Linear Hair, declared bankruptcy and began selling off its assets.
Mr. Harrow served as financial advisor to FAS Company, LLC, a consortium of regional owners of the Fantastic Sams hair salons in connection with the consortium's objective to purchase, out of bankruptcy, the assets of master franchiser FS Concepts, a subsidiary of Santa Ana, California-based Opal Concepts. Mr. Harrow devised the acquisition strategy and assisted the consortium in raising debt and equity. Key challenges facing Mr. Harrow included a competitive bid from a stocking horse and limited time for due diligence.
* Libra's restructuring professionals have led the above-mentioned transactions.