Due to severe liquidity pressures resulting from customer pressure to reduce prices on products it supplied, high operating and overhead costs , the inability to achieve expected operational efficiencies resulting from multiple acquisitions, the company was forced to file for Chapter 11 on an emergency basis with essentially no cash to fund the next payroll. This company was an international tier one auto manufacturer supply company and its affiliates were suppliers of automotive components, systems and modules to many of the world’s largest vehicle manufacturers, including DaimlerChrysler, Ford Motor Company, General Motors Corporation, Honda Motor Company, Nissan Motor Company and Toyota.
William Murphy’s responsibility included serving as shadow CFO during the Chapter 11 case. The responsibilities included assuring ongoing periodic reporting was maintained and made more efficient, leading insurance renewal efforts for first year of Chapter 11 and assisted new CFO with the renewal efforts during the 2nd year, lead negotiations and communications with secured revolver bank group, including 5 amendments to the credit agreement. In addition, William Murphy was responsible for communications between the company and the various creditor constituents.