Machine Shop on the Brink of Liquidation

Big Shoulders Refinanced the Company Back to Health

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Big Challenge

  • Twenty year old minority-owned machine shop in Houston, TX that serves the oil and gas industry

  • Sales came to a near halt at the bottom of the oil and gas downturn, and the company couldn't make debt payments, tripping their bank's covenants

  • Bank was owed $2MM and despite the company's considerable equity in the assets, the bank called the loan  in February 2017

  • Company was forced to let go most of its 30 long-time employees, and search for financing

Big Shoulders

  • Big Shoulders funded a $2MM term loan, backed by machinery and real estate, and structured the payments to facilitate regrowth

  • This allowed the company to avoid foreclosure and continue operating while they rode out the oil and gas cycle and even Hurricane Harvey in August 2017 

  • The company has emerged very strong – it has re-hired 20+ employees and is adding a second shift to meet demand

  • In December 2017, the company was healthy enough to secure traditional bank financing and repaid Big Shoulders in full - 14 months early!