Harriet & Henderson Yarns, Inc.

A yarn-spinning company based in North Carolina with two distinct operating units. The company experienced financial difficulties and filed Chapter 11 on July 15, 2003.

Engagement Goals

On July 25, 2003, H&H yarns hired Brookwood as its exclusive advisor. Brookwood subsequently arranged the sale of its operating business units under Section 363 of the U.S. Bankruptcy Code.

Engagement Process and Outcomes

The Challenge – H&H Yarns increased production capacity prior to a major industry downturn and was forced to restructure. When faced with bankruptcy, the Company selected Brookwood based upon the combination of its textile industry, M&A, troubled company and bankruptcy sale experience.

Brookwood’s Role – In this transaction, Brookwood: (i) rapidly completed a detailed information memorandum; (ii) contacted over 100 strategic and financial buyers; and (iii) successfully conveyed a complicated story in a consolidating industry facing intense foreign competition. This rapid, thorough process yielded significant strategic and financial buyer interest and met the timing needs of the bankruptcy process.

Expedient and Satisfactory Results – Brookwood closed the transaction 90 days after engagement. The transaction proceeds enabled the Company to repay its senior term debt in full.