Metals, Mining & Steel

Steelwind Industries, Inc. specializes in: 1. Heavy Metal Fabrication; 2. Machining; 3. Heat Treating, 4. Abrasive Blasting, and 5. Painting.  John Stark was appointed as the Chief Restructuring Officer in April of 2017.  Through a combination of expense reductions and a sales initiative which resulted in an increase in sales, the company was able to significantly increase profitability.  Water Tower Capital contacted lenders, in order to identify the best take-out financing for the company’s existing lender.  After a series of negotiations, the company chose an asset-based lender that provided a term loan on the real estate and the equipment, as well as a revolving credit facility on the working capital assets.

  • Financial advisor to Official Equity Committee in the Chapter 11 Bankruptcy of LTV Corporation, a $5 billion integrated steel producer

 

  • Appointment of equity committee and LTV’s agreement to give USWA 20% of the Equity in exchange for concessions set the stage for the successful resolution of the LTV Chapter 11

 

  • Continued losses forced the sale of the assets of LTV

  • Advisor to Sand Springs Metal Processing, the largest unsecured creditor of Sheffield Steel in its Chapter 11 Bankruptcy

 

  • SSMP was a just-in-time value added supplier of scrap steel to the bankrupt 600,000 ton mini-mill

 

  • Sand Springs received >par recovery in the reorganization

  • Managed the workout of JNL’s original $60 million investment in the subordinated debt through a contentious bankruptcy in 1994. (JNL managed to persuade the court to reject the Debtor’s proposed Disclosure Statement, which resulted in the re-negotiation of the POR

 

  • Subsequent to the reorganization, served as the non-executive chairman of the board

 

  • Funded an acquisition with $40.0 million Senior Unsecured Note with an interest rate of LIBOR + 5.0% and extension payments beginning at 1% per month until repayment in full.   Such loan included warrants for 0.50% of the fully diluted common shares exercisable at 1¢ per share

 

  • The Company was acquired by American Industrial Partners in September 1997

 

  • JNL realized a >2x premium on its original investment and PPMA realized $3.5 million of income on its one month investment generating a 264% IRR

  • Managed the workout of JNL’s original $26 million of Senior Notes

 

  • Later purchased $37 million of Sr. Notes for $3.5 million

 

  • Led the filing of an involuntary chapter 11 petition against on August 24, 1993.Carolina Steel’s plan of reorganization was approved in September of 1994 and the securities were distributed in October of 1994.  As part of the plan, PPMA’s client received approximately 95% of the equity.  The balance of the equity was distributed to management

 

  • In 1999, when the company was ultimately sold to Hirschfeld Steel and O’Neal Steel, PPMA’s client received a distribution that represented a 31.4% annualized IRR on its investment (from January 1, 1991 through the transaction date)

Florida Steel (mini mill)

  • Managed JNL’s investment in the bonds of this mini mill producer

 

  • Upon the completion of a negotiated sale, JNL recovered its entire investment

 

  • Managed JNL’s investment in the bonds of this aerospace supplier through its reorganization

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Water Tower Capital, LLC     N30 W29393 Hillcrest Drive,  Pewaukee, WI  53072        300 South Wacker Drive  Suite 2300    Chicago, IL  60606

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