Vermont Business Magazine Dorset Partners LLC is pleased to announce that it has received the National Turnaround of the Year Award, for businesses with revenue under $50 million, from The Turnaround Management Association (“TMA”) for its role in the restructuring of Vermont Aerospace Manufacturing Inc. The award was presented to Dorset Partners and other members of the restructuring team during the 2017 TMA Annual Conference in Fort Worth, Texas.
Vermont Aerospace makes precision machined metal components for commercial and military aircraft, including weapons systems that were critical in turning the tide against ISIS in Iraq and Syria. For decades the company provided great jobs in their small post-industrial town and maintained a critical base of skilled craftsmanship in the region. The employees are well known for their ability to turn out the most complex precision parts, perfectly and repeatedly.
The sudden death of Vermont Aerospace’s Founder & CEO’s was the linchpin for a torrent of legal, bank, and solvency woes to drop upon the 100 percent ESOP owned Vermont Aerospace. The company had been run up against the rocks of mismanagement for six years and this brought everything to a head; revenues had fallen from $45M to $10M annually, investigative agencies were circling, the largest customer (40 percent of remaining sales) had recently departed, the accounting was broken, loans were in default, employee pay had been cut 10 percent which killed morale, customers had been mistreated, and the supply chain was locked up.
The turnaround team, led by Jeff Sands of Dorset Partners, immediately went to work. Cash was put under tight control, employee meetings were held, vendors and lenders accepted a restructuring plan and customers supported the plan with continued orders. Finally, after a successful turnaround, Dorset partners ran a sale process with American Industrial Acquisition Corporation (AIAC) being the winning bidder. The lender received a full recovery, unsecured creditors are being paid out 100% over time and nearly 100 jobs were saved. Vermont Aerospace is now an employer of choice in northern Vermont.
About Dorset partners LLC
Dorset Partners is Turnaround Consulting and Investment firm with a specialty in revitalizing challenged mid-market businesses. Dorset Partners works with entrepreneurs, banks and private equity firms to stabilize the business, restructure the debts and bring the company to a new foundation of stability and profits.
Dorset actively seeks distressed industrial opportunities globally, with a strong geographic preference for New England and Europe.
About the Turnaround Management Association
The Turnaround Management Association (TMA) is the leading organization dedicated to turnaround management, corporate restructuring, and distressed investing. Established in 1988, TMA has more than 8,300 members in 55 chapters worldwide, including 32 in North America. Members include turnaround practitioners, attorneys, accountants, advisors, liquidators, executive recruiters, and consultants, as well as academic, government, and judicial employees.