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• Case | HBS Case Collection | August 2011 (Revised November 2018)

  Lind Equipment

  Richard S. Ruback and Royce Yudkoff

  Lind Equipment failed to meet its loan covenants with its senior bank lender in the summer of 2008, just six months after it was acquired. While the senior bank debt comprised only 6% of the capital used in the acquisition and was fully secured, it exercised its right to stop payments to Lind's subordinated lender that funded about 40% of the acquisition, pushing that debt into default as well. These financial problems were the result of declining revenues and profits at Lind as exchange rates and the impact of the Great Recession took its toll on the firm. Without a quick solution, Lind could be pushed into bankruptcy.

  Keywords: Financial Condition; Borrowing and Debt; Capital; Revenue; Financing and Loans; Financial Strategy; Financial Management; Acquisition; Financial Crisis; Currency Exchange Rate; Insolvency and Bankruptcy; Manufacturing Industry; Industrial Products Industry;

  Citation:

  Ruback, Richard S., and Royce Yudkoff. "Lind Equipment." Harvard Business School Case 212-012, August 2011. (Revised November 2018.)  View Details

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• Case | HBS Case Collection | February 2011 (Revised October 2018)

  ALAC International

  Richard S. Ruback and Royce Yudkoff

  ALAC was a small importer of specialty industrial chemicals. The case explores the different financing alternatives to facilitate the company's explosive growth in working capital. At the end of 2009, the company was awarded the United States distributorship for the specialty chemical di-isononyl phthalate (DINP) from a large Taiwanese producer and had almost tripled its sales in 2010. It expected to double its sales in 2011 and to dramatically increase its profits. ALAC critically needed to obtain financing for the explosive growth in its inventory and accounts receivable balances.

  Keywords: Working Capital; Growth Management; Financing and Loans; Chemical Industry;

  Citation:

  Ruback, Richard S., and Royce Yudkoff. "ALAC International." Harvard Business School Case 211-065, February 2011. (Revised October 2018.)  View Details

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• Teaching Note | HBS Case Collection | May 2018 (Revised October 2018)

  Lind Equipment

  Richard S. Ruback, Royce Yudkoff and Ahron Rosenfeld

  Teaching Note for HBS No. 212-012. Lind Equipment, a Canadian manufacturer and distributor of industrial electrical safety equipment, was purchased in December 2007 by Brian Astl (HBS 2006) and Sean Van Doorselaer. Lind’s performance was negatively impacted by the Great Recession and exchange rate changes soon after its acquisition. The acquisition was financed mostly with subordinated and seller debt (50%) and equity (44%); only 6% was provided by its senior lender, HSBC. When Lind violated HSBC’s loan covenants, the bank refused to negotiate and insisted that Lind repay its loan in full. Astl and Van Doorselaer had to decide on a refinancing plan.

  Keywords: acquisition; recession; seller debt; equity; Financial Condition; Borrowing and Debt; Capital; Revenue; Financing and Loans; Financial Strategy; Financial Management; Acquisition; Financial Crisis; Currency Exchange Rate; Insolvency and Bankruptcy; Manufacturing Industry; Industrial Products Industry;

  Citation:

  Ruback, Richard S., Royce Yudkoff, and Ahron Rosenfeld. "Lind Equipment." Harvard Business School Teaching Note 218-119, May 2018. (Revised October 2018.)  View Details

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