Foss Manufacturing

Foss Manufacturing is a leading producer of fiber and non-woven products for distribution to retailers and equipment manufacturers located throughout the United States and abroad. Prior to and throughout Gordian's engagement as investment banker to Foss, the Company experienced significant profitability degradation. Foss filed for bankruptcy protection in September 2005 as a result of declines in operating performance and extensive turmoil surrounding accounting fraud, which ultimately led to defaults under its senior credit facility.

Gordian was engaged by the U.S. Trustee to the Foss estate in December 2005 to run a marketing process for the ultimate sale of the assets through a Chapter 11 363 auction or plan of reorganization. Despite a recent historical lack of profitability, an operating loss of $345,000 for the first quarter of 2006, and the expedited nature of the sale process, Gordian was able to establish a stalking horse bidder and successfully sell the Company to a private equity fund. The Foss Manufacturing Company estate received consideration of approximately $39 million, and the senior creditors received recovery in full - an outcome nobody could have foreseen at the commencement of Gordian's engagement.