SIT­U­A­TION

• Chi­ron was hired in 2019 as Finan­cial Advi­sor and Invest­ment Banker to Cape Quar­ry, LLC (Com­pa­ny)
• The Com­pa­ny oper­at­ed a 2000-acre lime­stone quar­ry locat­ed in South­ern Mis­souri on the Mis­sis­sip­pi Riv­er, barg­ing a broad range of con­crete aggre­gates, rip-rap flood con­trol prod­ucts and road sub-base to com­pa­nies on the Louisiana, Texas and Mis­sis­sip­pi coasts
• The Com­pa­ny had been shut­tered in 2010 from the effects of the 2008 Great Reces­sion. A part­ner­ship of two Baton Rouge busi­ness­men pur­chased the quar­ry in 2018 using their lim­it­ed equi­ty resources plus a fam­i­ly office loan of approx­i­mate­ly $5 MM
• The busi­ness plan to oper­ate the Com­pa­ny was under­cap­i­tal­ized, far exceed­ing the equi­ty resources of the own­ers and the exe­cu­tion capa­bil­i­ty of management
• The fam­i­ly office had declared a default on the quar­ry mort­gage; ven­dors were owed mil­lions of dol­lars and the equip­ment lenders had also declared a default. The own­ers could not agree on a path forward

OUT­COME

• Chi­ron was hired to assess the Company’s finan­cial posi­tion, to pre­pare it for a Chap­ter 11 fil­ing, and to raise DIP financing
• Chi­ron sup­port­ed a Chap­ter 11 with finan­cial reports, cash flow bud­gets, and com­mu­ni­ca­tions with stake­hold­ers and arranged a DIP facil­i­ty work­ing in col­lab­o­ra­tion with bank­rupt­cy counsel
• The Company’s Chap­ter 11 plan was con­firmed in Novem­ber 2020, with sup­port from the mort­gage lender and a new man­age­ment team

“Chi­ron man­aged a dif­fi­cult sit­u­a­tion with mul­ti­ple par­ties and com­pet­ing per­son­al­i­ties. Chi­ron remained grace­ful and pro­fes­sion­al through­out.” — Daniel Mar­tinez, Amerisource