Case Study:

Piedmont Hardwood Flooring - Corporate Recovery

Situation

• Matrix advised Piedmont in its 2001 Ch. 11 bankruptcy filing which led to a sale of the company to Harbinger Mezzanine Partners, previously a creditor of the company.
• In late 2002, after numerous improvements to the business, Harbinger once again retained Matrix to explore a sale of the company in order to liquidate its investment.

Solution

• Matrix prepared a comprehensive offering memorandum after conducting extensive due diligence on Piedmont including meetings with management and a facility tour.
• Matrix identified and contacted strategic and financial acquirors, and maintained thorough records of likely acquiror interest including comments and concerns.
• Matrix conducted a dual process by entertaining a pre-emptive offer while simultaneously concluding the limited auction.
• Matrix assisted in the gathering and organizing of relevant company information, the preparation of a management presentation for interested parties, and the negotiation of transaction terms and structures.
• A preliminary letter of intent was reached with the pre-emptive bidder, although a transaction was not completed.
• Ultimately, a purchase agreement was reached with Wayne Battle Lumber Co., Inc., a participant in the auction process.