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Case Studies

Oil & Gas Equipment Manufacturer

Manufacturing and Industrial

Shutterstock 1646200114


  • The oil & gas equip­ment man­u­fac­tur­er is a man­u­fac­tur­er of upstream and mid­stream process and pro­duc­tion equip­ment for the oil and gas industry
  • 2019 rev­enues reached $137 MM with $20 MM in EBIT­DA but began to decline from the down­turn in ener­gy prices, with neg­a­tive EBIT­DA begin­ning dur­ing mid-year 2020 and per­sist­ed through the fall of 2021
  • Chi­ron was engaged as Invest­ment Banker and Finan­cial Advi­sor in Octo­ber 2021 after the Company’s failed self re-financ­ing. At engage­ment, the Com­pa­ny was in default with their bank senior-secured lender and had over $10 MM of past-due accounts payable


  • Chi­ron suc­cess­ful­ly nego­ti­at­ed with the incum­bent senior-secured bank lender to obtain for­bear­ance, which allowed the Com­pa­ny access to its senior secured line of cred­it through­out restructuring
  • Chi­ron restruc­tured the Company’s $31 MM lease with a third-par­ty land­lord, imme­di­ate­ly increas­ing liquidity
  • Chi­ron nego­ti­at­ed with the Company’s Board, its Advi­sors, and its Pri­vate Equi­ty Spon­sor to inject $2 MM of equi­ty and lease for­bear­ance to facil­i­tate the refi­nanc­ing effort with new lenders
  • Chi­ron suc­cess­ful­ly raised $1 MM+ of debt financ­ing by mon­e­tiz­ing the Company’s Employ­ee Reten­tion Tax Cred­it, fund­ed by a spe­cial­ty hedge fund, crit­i­cal to improv­ing liq­uid­i­ty dur­ing the restructuring
  • Chi­ron mar­ket­ed the deal to over 380 lenders and suc­cess­ful­ly placed a quadru­ple tranche debt facil­i­ty total­ing over $19 MM
  • The restruc­tur­ing and new financ­ings dra­mat­i­cal­ly increased the Company’s finan­cial sta­bil­i­ty. At clos­ing, liq­uid­i­ty increased 5.0x ver­sus the bank, com­mit­ted financ­ing increased by $16 MM, and past-due accounts payable were paid down by $3.5 MM

The Chi­ron team was pro­fes­sion­al, proac­tive and effec­tive in advis­ing the com­pa­ny through its restruc­tur­ing and refi­nanc­ing process.” — John Can­non, Senior VP at Cadence Busi­ness Finance

The Challenge

2019 revenues reached $137 MM with $20 MM in EBITDA but began to decline from the downturn in energy prices, with negative EBITDA beginning during mid-year 2020 and persisted through the fall of 2021.

The Chiron Solution

Chiron successfully negotiated with the incumbent senior-secured bank lender to obtain forbearance, which allowed the Company access to its senior-secured line of credit throughout restructuring.

The Result

The restructuring and new financings dramatically increased the Company’s financial stability. At closing, liquidity increased 5.0x versus the bank, committed financing increased by $16 MM, and past-due accounts payable were paid down by $3.5 MM.

Is your com­pa­ny per­form­ing like it should?