Maintaining Business Continuity Through A Financial Restructuring And Sale
Vertellus, a private global manufacturer of fine and specialty chemicals, retained FTI Consulting to advise on the development of communications strategies, messages and materials to preserve business continuity as the company restructured its finances and sold substantially all of its assets under Chapter 11 Section 363 of the U.S. Bankruptcy Code. Success depended on Vertellus’ ability to effectively delineate filing entities from those that were unaffected, explain the U.S. process to domestic and international stakeholders, convince suppliers of the company’s ability to pay for goods and services delivered after the filing date, navigate renegotiation of collective bargaining agreements and keep employees motivated as bonus and retention programs were amended.
Our Role With Vertellus
FTI Consulting worked with management, external legal counsel and restructuring advisors to develop messaging that succinctly explained the factors precipitating the filing, why the proposed sale to the company’s existing lenders was the best possible outcome, and how the U.S. Chapter 11 process would help the company achieve its objectives. The team developed more than 40 unique filing-related communications that tailored messages to the needs and concerns of employees, customers and suppliers at each business unit, as well as provided extensive training to those employees on the front lines to confidently explain the situation and answer potentially challenging questions. As the case continued, FTI Consulting developed regular milestone updates and direct communications explaining key actions being taken to reassure stakeholders of the company’s continued forward momentum.
The court approved the sale of the Vertellus assets to the lender group on September 8, 2015, valuing the company’s assets at $453.8 million. The business operated successfully throughout the process and was better positioned to compete moving forward.