03 New Federal State Resources Paul Brown MEDC
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03 New Federal State Resources Paul Brown MEDC
- 1. MEDC Capital Services Team Help with financing your exports
- 8. Website: www.michiganadvantage.org [email_address] MEDC Capital Services Team 300 N. Washington Sq. Lansing, MI 48913 Contact Info
Editor's Notes
- Mike- Bullet spacing & type over on Problems Color and type over on Consequences.
- Visteon Corp. would have to seek Chapter 11 bankruptcy protection soon because of a liquidity crisis brought on by a reduction of revenue that began in the fourth quarter. Visteon made a bond payment in full last week ahead of a deadline, avoiding a default that had threatened to send the company into bankruptcy. http://www.autonews.com/article/20090316/COPY/303169980 Example 1… United Metal Products –Detroit is a leading high volume stamping & assembly company for a wide range of auto. Purchasing an exiting defense focused stamping company in Florida and moving the work to Michigan. MEDC is reviewing a $2.4MM participation as part of a total $6.0MM loan package for this acquisition. It is anticipated to create a significant number of jobs and will help to stabilize the firm’s revenues. The bank could not justify the entire facility in light of the declining value of automotive receivables which comprise the current majority of the firms work. Example 2… Mark One Corporation builds large materials handling machines for the automotive industry. Typically these machines handle and manufacture parts you can see, body panels, etc.. Mark One was challenged to find a less caustic and more environmentally sound way to clean steel in preparation for stamping and welding. Steel comes with oil and industrial lubricants on it to prevent rust in transit. Typically corrosive chemicals were applied to clean it but this has proven expensive and environmentally unsound. Mark One developed a non-caustic system of rolling the steel clean saving millions of dollars for their clients and venturing into a new, diversified field. Mark One wants to expand its Clean Steel operation but is having difficulty securing financing because its core business is still heavily linked to automotive. Terms are currently under discussion. Working on a third… Wright-K technologies, a 100% automotive supplier has recently secured patents and IP and has formed a new division using cash on hand to attempt to begin supplying the electrified auto drive train and to produce components for the wind energy sector. They have a close relationship with our local economic development partner, Saginaw Future who introduced them to their current bank-1st State Bank. The company has a good relationship with the bank but was struggling to get away from operating on an all cash basis as they begin to commercialize the IP and start selling products and services. They currently have the first $1.0MM request in front of 1st State Bank, who is struggling with the automotive receivables which the parent firm must continue to manage. Participation in this program with 1st State Bank is an ideal solution for both participants. The proposal is currently under review.
- Visteon Corp. would have to seek Chapter 11 bankruptcy protection soon because of a liquidity crisis brought on by a reduction of revenue that began in the fourth quarter. Visteon made a bond payment in full last week ahead of a deadline, avoiding a default that had threatened to send the company into bankruptcy. http://www.autonews.com/article/20090316/COPY/303169980 Example 1… United Metal Products –Detroit is a leading high volume stamping & assembly company for a wide range of auto. Purchasing an exiting defense focused stamping company in Florida and moving the work to Michigan. MEDC is reviewing a $2.4MM participation as part of a total $6.0MM loan package for this acquisition. It is anticipated to create a significant number of jobs and will help to stabilize the firm’s revenues. The bank could not justify the entire facility in light of the declining value of automotive receivables which comprise the current majority of the firms work. Example 2… Mark One Corporation builds large materials handling machines for the automotive industry. Typically these machines handle and manufacture parts you can see, body panels, etc.. Mark One was challenged to find a less caustic and more environmentally sound way to clean steel in preparation for stamping and welding. Steel comes with oil and industrial lubricants on it to prevent rust in transit. Typically corrosive chemicals were applied to clean it but this has proven expensive and environmentally unsound. Mark One developed a non-caustic system of rolling the steel clean saving millions of dollars for their clients and venturing into a new, diversified field. Mark One wants to expand its Clean Steel operation but is having difficulty securing financing because its core business is still heavily linked to automotive. Terms are currently under discussion. Working on a third… Wright-K technologies, a 100% automotive supplier has recently secured patents and IP and has formed a new division using cash on hand to attempt to begin supplying the electrified auto drive train and to produce components for the wind energy sector. They have a close relationship with our local economic development partner, Saginaw Future who introduced them to their current bank-1st State Bank. The company has a good relationship with the bank but was struggling to get away from operating on an all cash basis as they begin to commercialize the IP and start selling products and services. They currently have the first $1.0MM request in front of 1st State Bank, who is struggling with the automotive receivables which the parent firm must continue to manage. Participation in this program with 1st State Bank is an ideal solution for both participants. The proposal is currently under review.