Client Profile

Shapes/Arch Holdings, LLC ('Arch Holdings' or the 'Company'), founded in 1952, is a vertically integrated leading North American supplier of a range of industrial and building products. The Company operates through four operating subsidiaries: Shapes, LLC ('Shapes'), Delair, LLC ('Delair'), Ultra, LLC ('Ultra') and Accu-Weld, LLC ('Accu-Weld'). Shapes is a manufacturer, fabricator, and distributor of a broad array of customized, large profile aluminum extrusions. Delair offers a variety of maintenance-free aluminum fence systems and America's most recognized brands of above-ground swimming pools. Ultra is a leading supplier of value priced, globally sourced hardware products. Accu-Weld designs, manufactures and distributes high quality, made-to-order vinyl residential replacement windows and steel entry doors.

Situation

As a result of the decline in revenue among its customer base, coupled with static overhead expenses, the Company was challenged in funding current operations under its existing lending arrangement and was unable to service the PP&E borrowing base component of its funding or pay past due obligations to vendors. Consequently, Arch Holdings filed for protection under Chapter 11 of the United States Bankruptcy Code on March 16, 2008.

Solution

As a condition set by the Unsecured Creditors Committee, whereby an affiliate of H.I.G. Capital, LLC ('H.I.G.') and Bayside Capital Opportunity Fund ('Bayside') was approved as the alternative DIP lender and stalking horse purchaser of Arch Holdings' assets, replacing Versa Capital, SSG was hired by the Company to conduct an expedited sale process under a plan of reorganization and to shop the stalking horse bid of H.I.G/Bayside. Arch Holdings and SSG moved quickly to explore other potential sale opportunities with a broad range of strategic and financial buyers. At the conclusion of the expedited sale and plan of reorganization process, the bid by H.I.G./Bayside was approved. The plan confirmation/sale hearing took place on July 22, 2008. The sale transaction closed on August 8, 2008.

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