One of the world's largest suppliers of post-consumer recycled polyethylene terephthalate (rPET), which is then used to produce high-quality food-grade recycled rPET material sold to the world's largest beverage companies for packaging.
Industries
Over $250mm of asset sales within Chapter 11 proceeding resulted in significant distributions to unsecured creditors.
Force 10 was initially retained during the fourth quarter of 2020 to navigate underperformance and insolvency issues surrounding Carbonlite’s business model and complex capital structure, with over $380 million of indebtedness including $240 million of secured indebtedness across three publicly-traded municipal bonds, a term loan, and ABL facility and capital lease obligations. Force 10 led CarbonLite’s restructuring efforts through negotiating and securing four separate DIP loans totaling $75 million and the sale of four business units for proceeds of approximately $230 million.
Force 10 implemented aggressive efforts to stem negative gross margins through rigorous capacity utilization, operational, and financial analyses resulting in the abolishment and redesign of the operational and pricing models in order to reverse years of negative gross margins. Through this process, the majority of the customers accepted 25% price increases. Force 10 was tasked with oversight of the Chapter 11 process, managing the business, developing cash flow models, negotiating and securing four separate DIP loans, managing the investment banking process, and preparing/managing the diligence process.
