Ampleo was hired by a calf ranch/dairy operation in Kuna, ID at the request of its primary secured lender as a financial advisor to assist in a financial restructuring of the company’s debt. At the time Ampleo was hired, the operation had $55M outstanding in a working capital line of credit and $12.5M outstanding in term debt. The secured debt was held by a syndicate of lenders. Ampleo prepared a restructuring plan that called for the downsizing of its fat cattle business and redirected its resources to become a custom feed operation – significantly reducing market risk. It also helped improve the operating profitability of its dairy business, during a time when milk prices were at depressed values. Ampleo led the negotiations in a successful forbearance agreement, which the operation is performing against. The line of credit has been paid down to $8.5M, with the remaining inventory / AR securing the loan totaling $11M. Ampleo also helped ensure reporting requirements were prepared timely and accurately and helped manage the relationship between lender and borrower. The company remains in business today, is in compliance with all loan covenants, and has returned to the performing portfolio in the bank.
