SSG Client Transactions

Title

AG Industries, Inc.

Client Profile

AG Industries, Inc. ('AGi' or the 'Company') primarily provides repair and maintenance services for continuous casting equipment, which is used by steel mills to produce flat-rolled steel. The business consisted of seven facilities throughout the U.S.

Situation

The decrease in flat-rolled steel volumes in the late 1990s and early 2000s, coupled with the bankruptcy filings of certain customers, adversely affected AGi's borrowing base, revenue and cash flow, causing AGi to file for protection under Chapter 11 of the U.S. Bankruptcy Code.

Solution

AGi retained SSG in December 2001 to sell the Company as a whole, or by division, in order to maximize the value to secured creditors. SSG went to market within one week of engagement and despite the continued deterioration of industry conditions, signed SMS Demag, Inc., a foreign strategic buyer, as the platform bidder for a sale under Section 363 of the U.S. Bankruptcy Code. The transaction subsequently closed in March 2002.

March 2002