OPPapers.com Essay Index >> Business >> Padgett Paper
We have many free term papers and essays on Padgett Paper. We also have a wide variety of research papers and book reports available to you for free. You can browse our collection of term papers or use our search engine.
Padgett Paper Products CASE: PADGETT PAPER PRODUCTS COMPANY As result of inflation and the acquisition of its competitor, Tri-State Tablet Company in 1996, Padgett's
Padgett Paper Products Company Carlson Trust Company of Richmond, Virginia has a long-term banking relationship with Padgett Paper Product's Inc. Historically Padgett
Padgett Paper Case Solution Outline -Summary -Company -Market -Product -Projections -Options -Current Capital Structure -Proposed Capital Structure -Review Summary
padgett paper Case Solution Outline -Summary -Company -Market -Product -Projections -Options -Current Capital Structure -Proposed Capital Structure -Review Summary
Padgett paper Case Solution Outline -Summary -Company -Market -Product -Projections -Options -Current Capital Structure -Proposed Capital Structure -Review Summary
Submitted by asmith1019 on November 6, 2007
Category: Business
Words: 1171 | Pages: 5
Views: 426
Popularity Rank: 28,513
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Case Solution Outline
-Summary
-Company
-Market
-Product
-Projections
-Options
-Current Capital Structure
-Proposed Capital Structure
-Review
Summary
Objective: To find a mutually acceptable debt structure that will
minimize lender risk while increasing company value.
Constraints: 1) realistic cash flow projections, 2) Bank safety levels
Situation for each Business Group
Bank: Over extended and is in a bad situation. Lending exceeds reasonable levels and is not collateralized or subject to convenants.
A $8 million loan is abnormal for the bank. The companies management does not appear to understand the unrealistic debt
situation, the impact on firm value and impact on the upcoming audit report.
Management: Has unrealistic expectations and a lack of understanding of impact of current structure of firm value.
Company: The company has considerable levels of equity and is not maximizing its financial structure. It is capable of taking on
considerably more debt, however, the debt needs to be more appropriately structured.
Ownership: Closely-held company with owner having little interest in management. Owned for dividend distribution.
The Company Background
1. Closely held public company (OTC)
2. MFG stationery including notebooks, loose leaf binders, filler paper
3. 100 years old
4. Management is professional but not finance savvy
5. Customers: 5,000 wholersalers and retailers in US & Canada (not subject to concentrations)
6. Seasonal cash needs - back to school push
7. Minor acquisitions, until recent purchase of Tri-Star
The Market
-Consolidations
-Larger companies begin to dominate
-Thinning margins
-Price of paper increases
-Increased...
You must Login to view the entire paper.
If you are not a member yet, Sign Up for free!