Executive Summary
CMBG supported a medical device manufacturer through a Chapter 11 process by helping manage cash, negotiate with vendors, and support both a $10 million DIP facility and a 363 sale. The result preserved 60 jobs and produced stronger-than-expected recoveries.
Case Study Section
Situation
The company was a medical device manufacturer operating inside a complex Chapter 11 case, where liquidity discipline and process execution had to happen in parallel.
The operating business still had value worth preserving, but only if financing, vendor confidence, and transaction preparation could be managed carefully enough to keep the company functioning through the sale process.
Case Study Section
Key Facts
This was a court-supervised restructuring that still required practical execution discipline outside the courtroom.
Court Process
Chapter 11
DIP Facility
$10 million
Transaction
363 sale
Jobs Preserved
60
Recovery
Higher than anticipated by the court
Case Study Section
CMBG's Advisory Role
CMBG acted as financial advisor to the debtor and helped support the parts of the Chapter 11 process that live in the daily operating reality of the company, not just in pleadings and hearings.
- Supported cash flow management and near-term liquidity planning.
- Assisted in vendor negotiations needed to preserve continuity.
- Helped prepare financial disclosures for the court process.
Case Study Section
Financing and Sale
CMBG helped structure and support a $10 million DIP financing facility, creating the runway required to complete a 363 sale process rather than drift into a value-destructive collapse.
The resulting sale preserved 60 jobs and generated a stronger recovery outcome than the court had originally anticipated.
Case Study Section
Key Takeaways
- Even in Chapter 11, outcomes often turn on cash discipline and vendor confidence more than on process labels alone.
- DIP financing only solves the problem if it is paired with credible execution and transaction planning.
- A 363 sale can preserve employment and improve recoveries when the business remains viable enough to market as an operating platform.