SIT­U­A­TION

• The Com­pa­ny is a spe­cial­ty man­u­fac­tur­er of renew­able jet fuel from used cook­ing oil and inter­me­di­ate chem­i­cals by resin producers
• Rev­enues declined from 2018 to 2020 with neg­a­tive EBIT­DA each year, exac­er­bat­ed by COVID-19
• The biggest chal­lenge was find­ing a lender will­ing to invest in a Com­pa­ny with past-due lia­bil­i­ties, declin­ing rev­enues, and neg­a­tive EBITDA
• Anoth­er chal­lenge was find­ing a lender will­ing to take assume the lega­cy loan on the refin­ery real estate
• The Com­pa­ny also was involved in a sig­nif­i­cant law­suit and was under refi­nanc­ing pres­sure from its lega­cy work­ing cap­i­tal lender

OUT­COME

• Chi­ron suc­cess­ful­ly worked with man­age­ment to get the Com­pa­ny to get back on track to pos­i­tive cash flow through­out the term of the engage­ment. Q1 2021 rev­enues were up sub­stan­tial­ly and the Com­pa­ny pro­duced pos­i­tive EBITDA.
• Chi­ron worked to bet­ter man­age cash on a week­ly basis, iden­ti­fy­ing cost-cut­ting effi­cien­cies and pri­or­i­tiz­ing pay­ments to crit­i­cal ven­dors. Chi­ron also worked with the major cred­i­tor to nego­ti­ate for­bear­ance exten­sions allow­ing time to run a com­pet­i­tive cap­i­tal raise for the even­tu­al refi­nanc­ing of the work­ing cap­i­tal line of credit
• Chi­ron suc­cess­ful­ly iden­ti­fied a group of new lenders to refi­nance the lega­cy bank, while also pro­vid­ing addi­tion­al liq­uid­i­ty to elim­i­nate crit­i­cal payables
• In com­plet­ing this refi­nanc­ing, Chi­ron has repo­si­tioned the Com­pa­ny for a more com­pet­i­tive and attrac­tive M&A exit opportunity

“We are so appre­cia­tive of Chi­ron for the work done to secure the new line of cred­it. Please know how very much I appre­ci­ate all the focused, hard work of the Chi­ron Team.” — CEO, Refin­er of Petro­chem­i­cals and Renew­able Fuel