CMergers & Acquisitions Case: Chemicals & Plastics Manufacturer
Cross-Border Due Diligence & Financial Report for Bankruptcy Reorganization

In 2000, GaiaTech was retained by two private investment firms to assist in their proposed buyout and recapitalization of a Tier 2 manufacturer of industrial plastic components, plastic interior decorative trim, door handles and center consoles, and other precision-molded plastics for North American, European and Asian automobile manufacturers.

The company, which had entered Chapter 11 bankruptcy for protection from debtors as it sought to reorganize, had approximately 24 plants and 5,000 employees in North America, Europe and Asia. GaiaTech was retained to assess potential environmental liabilities associated with the real estate and compliance requirements for the business.

Our work consisted of visits to 32 sites in the U.S., Canada, the United Kingdom, France, Germany, Spain, Italy, Mexico and the Czech Republic in a 30-day period. We offered a pragmatic analysis of budgeting concerns with regard to environmental liabilities, along with recommendations for resolving those concerns. GaiaTech represented both clients and interfaced with related counsel, representatives of the bankruptcy court, and potential lenders.

In late 2008, the successor company, now an independent limited liability company, entered a pre-packaged Chapter 11 bankruptcy as a consequence of the current sharp downturn in the automotive manufacturing sector.