Negotiated end to personal guarantees

Situation

• A multi-generation family-owned manufacturing company, a union shop, had experienced significant, increasing losses for three consecutive years.
• The Company’s lender was threatening to shut them down.
• Operations were almost totally out of control.
• The elderly majority shareholders were afraid that the lender would pursue their personal guarantees.
• Family members were at each other’s throats.
• The Board of Directors hired Renee based on the recommendation of a family friend, an experienced bank executive.

Results

• Within 12 months, profits improved from -27% to +4.4%.
• Gross margin improved 300%.
• Operations were significantly improved.
• The company obtained new funding at favorable rates.
• Renee successfully negotiated removal of the personal guarantees.
• Cordial family relationships were restored.