RESOURCES

Bankruptcy Reorganization

When a company enters bankruptcy, tremendous restructuring is typically necessary to save it from liquidation. A management or employee buyout can be the heart of such a reorganization, saving hundreds of jobs and giving employees a chance to turn their company around.

Good Stuff Food Company

Responding to bankruptcy and potential liquidation, American Capital together with members of the Teamsters, Bakers and Machinists unions acquired and restructured this $40 million, Los Angeles-based provider of bread, rolls and other baked goods. American Capital raised a $7 million working capital loan to help finance the transaction. The 350 employees accepted a reduction in compensation to enhance cash flow, and will be granted 75% ownership of Good Stuff over five years. 25% will be owned by American Capital and its principals.

American Capital designs restructuring plans and provides financing for companies in financially distressed situations.