Paramount Equipment, Inc., predicated in the Fort Wayne, Indiana, is a huge manufacturer of cranes and solid construction equipment tools, aerial work platforms, and food service equipment tools. Established in 1987, the Paramount Equipment recently had manufacturing process in 24nations. Nevertheless, it lost its competitive standing because it took too much debt on in the shape of bank borrowings relative to the chance level of its own company. Now the company must seek guarantees and financing as a way to restructure its debt.
Paramount's future depends on whether existing lenders, management, as well as the government of Ontario -where the business employs more than 7,000-can reach a doable restructuring and refinancing plan fast and whether Paramount was able to safeguard a capital injection from new investors. Students must decide the best capital structure policy consistent with competitive hazards and evaluate available tools for funding a company in financial distress. The case is great for use in first year MBA courses in corporate finance or monetary strategy and requires just small quantitative analysis to be performed by students. It would likewise function well in advanced undergraduate finance classes that cover financial distress and capital structure.
PUBLICATION DATE: July 08, 2014 PRODUCT #: 914557-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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