client_transactions

SSG Client Transactions

Title

Signal International, Inc.
Client Profile

Client Profile

Signal is a leading provider of marine and fabrication services which include new construction, modular fabrication and the overhaul, repair, upgrade and conversion of offshore drilling rigs and ships. With its strategic geographic footprint in Mobile, Alabama and Pascagoula, Mississippi, the Company maintains prime locations and extensive marine fabrication capabilities to serve both domestic and international customers.
Situation

Situation

Following the destruction of Hurricane Katrina along the Gulf of Mexico in 2005, the Company experienced an unprecedented backlog of work orders. In order to meet demand, Signal used a third-party recruiting service to hire approximately 500 individuals from India through the federal government's H-2B guest worker program. In 2008, a subset of these workers brought litigation against the Company. Signal disputed the allegations but subsequently lost the first case brought to trial in May 2015. The Company was experiencing softening demand for shipyard services due to depressed oil prices and the mounting legal expense and claims significantly affected its operating performance.
Solution

Solution

Signal ultimately settled with the lead plaintiffs and entered into a plan support agreement which enabled it to file for Chapter 11 protection. The bankruptcy filing provided a unified forum to address any future actions that may be taken against the Company and effectuate the settlement with the plaintiffs through a plan. The Company's senior lender, the RSA, agreed to serve as the stalking horse bidder in a sale process under a plan. SSG was retained as Signal's investment banker for the purpose of marketing the business and soliciting competing offers to the stalking horse bid. The RSA's stalking horse offer was ultimately the highest and best price for substantially all of the assets of the Company. The sale process enabled all key stakeholders to maximize value while preserving the jobs of substantially all of Signal's employees.
December 2015
has sold substantially all of its
assets to affiliates of
Under a confirmed Plan in the U.S. Bankruptcy Court for the District of Delaware
The undersigned acted as Investment Banker 
to Signal International, Inc

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Call to learn more

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