Baux Group
pag11

Baux Group

Background

Baux Group is formed by two subsidiaries: Compañía Valenciana de Aluminio Baux, which is devoted to the the production of coils from recycled aluminium, and Bancolor Baux, coil coating of aluminium slats.

It has two large production plants (Segorbe -Castellón- and Elche de la Sierra -Albacete-), headquartes in Valencia and a distribution centre in Madrid.

Founded in 1993, it experienced strong growth until 2007 supported by the construction industry. The company had to refinance its debt on several occasions due to the economic downturn that the industry faced in subsequent years, the large amount of debt (heavy investments in plant and equipment) and the weak operating and financial management.

NK5 Role

NK5 performed as a Chief Restructuring Officer (CRO) since mid-2015 on the proposal of the creditors and former shareholders, when the company was facing serious difficulties that compromised its viability.

Intensive control on cash flow, interaction wih supliers and the purchasing cycle, NK5 managed to stabilize the company and regain the trust of creditors, clients and suppliers.

In January 2017, NK5 became the sole shareholder after reaching an agreement with the former shareholders, under this agreement some non-operating assets were segregated and a new capital structure was stablished, were the main banks supported the company through working capital financing.

In December 2018, NK5 sold Baux Group to Jupiter Aluminium, north-American leader in the production of aluminium coils.

Results

  • Two years after the entry of NK5, EBITDA has increased by nearly 90%.
  • It has been operating at maximum capacity most of the time.
  • In addition, long-term Value Plans have been drawn up.
  • More than 320 jobs have been preserved.
  • New products and patents have been developed.
  • The trust of suppliers, creditors and other stakeholders has been regained.
  • A great deal for the recovery of bank debt was generated from a situation on the edge of bankruptcy.