Modern

Summary

Financial Advisor

Bristol, PA

Modern is an equipment leasing company with locations throughout the Northeast with concentrations in PA and NY.

CMA was retained to review the Company’s initial restructuring plan which primarily focused on reducing its unprofitable Aerial Work Platform rental fleet through asset sales. In addition, CMA was engaged to assist in negotiating a forbearance with its Senior Lenders in order to facilitate this restructuring.

Key Challenges

Declining Profitability

Management Forecasting Errors

Asset Dispositions

Engagement Highlights

Company management had significantly underestimated the amount of unprofitable assets in the fleet. With the help of CMA, Modern overhauled its operational restructuring plan to include the following:
- Total exit of the Aerial Work Platform business. Facilitated by asset sales and equipment lease exit/transfer through several large transactions.
- Re-alignment to go back to being a forklift dealership model.
- Rationalized operating footprint due to restructuring. Closed 8 operating locations. Generated additional proceeds through real estate sales and real estate lease savings.
With the successful operating plan in place, the Company was able to accomplish the following:
- $12.0M of asset sales of non-core assets.
- $2.5M of real estate sales.
- Identified annual operating cost reductions of $13.0M.
- Reduction in Senior debt by approximately $12.0M.
- Successful re-financing the ABL loan to support forklift dealership model.

Modern

Summary

Financial Advisor

Key Challenges

Engagement Highlights

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