Beaulieu Group LLC

• 7/17/17 Recap: Georgia-based carpet manufacturer filed for bankruptcy as consumers increasingly prefer hardwood flooring over carpets that remind them of a convalescent center. Consequently, the $10b market has gotten increasingly competitive and price compression is the result: the company's revenues have declined nearly 50% from $1b in 2007 to approximately $525mm in 2016. Recognizing these trends, the company commenced an operational restructuring in 2016 but with sustained overhead and a bloated cost structure, the company needs to do more. Its borrowing base, however, has decreased and the company, therefore, has run out of liquidity to continue pursuing its efforts. The company has arranged a $70mm DIP facility to facilitate a restructuring - the form of which is unspecified. 
• Jurisdiction: ND of Georgia 
• Capital Structure: $51.7mm RCF (Bank of America NA), $15.8mm TL (Cygnets LLC), $6mm third lien loan (CT Lender LLC) 
• Company Professionals:
  • Legal: Scroggins & Williamson PC (Robert Williamson, Ashley Reynolds Ray, Matthew Levin)
  • Financial Advisor: Armory Strategic Partners LLC (Scott Avila)
  • Investment Banker: Coveview Advisors LLC and Advisory Group Equity Services Ltd. (Thomas Canning)
  • Claims Agent: American Legal Claim Services LLC 
• Other Parties in Interest:
  • Prepetition & DIP Agent: Bank of America NA
    • Legal: Parker Hudson Rainer & Dobbs LLP (C. Edward Dobbs, James Rankin Jr.)
  • Official Committee of Unsecured Creditors
    • Legal: Fox Rothschild LLP (Michael Menkowitz, Paul Labov, Jason Manfrey, Marie Dooley) & (local) Thompson Hine LLP (John Isbell, Garrett Nail, John Allerding, Douglas Walters)
    • Financial Advisor: Phoenix Management Services LLC (Michael Jacoby, Bayard Hollingsworth, Pat Bellot)

Updated 9/21/17