Versabar

Versabar

Summary

Company Advisor

Houston, TX

Versabar, Inc. engages in the development and application of heavy lifting solutions. It engages in the rental of customized rigging systems. The company also engineers, fabricates, and operates lift and salvage systems in fixed or floating environments. The company was founded in 1981.

At the time of hire, the Company was in technical default on a matured credit agreement, faced liquidity challenges and underperformance of its business. The underperformance of the business put pressure on liquidity but also its ability to monetize and/or refinance key business assets.

Key Challenges
Covenant Violations
Depressed Asset Values
Low Liquidity
Oil Industry Cyclical Downturn

Engagement Highlights

  • Reviewed Versabar’s historical and projected financial performance for Versabar in total and for its heavy-lift salvage barge, the VB-10,000.
    • Monitored periodic reporting as they were updated and shared with key constituents to provide ongoing transparency
  • Reviewed Versabar’s liquidity situation and cash flow projections including underlying forecasts and assumptions.
  • Performed a valuation of Versabar excluding the VB-10,000 and of the VB-10,000 asset individually.
  • Reviewed the historical and on-going efforts to sell the VB-10,000 by prior advisors.
  • Negotiated and structured agreements with the primary lender group that allowed for a sale of VB-10,000 and restructured the remaining loan.
  • Resulted in significant debt paydown and Versabar’s clear path to completely repay its debt and continue as a going-concern.

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