Platinum Equity’s Aerospace Supplier Incora Taps Restructuring Advisers for $2bn Debt Load

Incora, a distributor of airplane parts owned by Platinum Equity, has hired restructuring advisers as it contends with a cash crunch brought on by low demand in the aerospace sector as a result of the ongoing pandemic, according to people familiar with the matter.

Incora has struggled since the onset of the pandemic because declining jetliner production has hurt demand for new components, while reduced air traffic over the past two years has also impacted demand for spare parts.

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The company has engaged PJT Partners Inc. as financial adviser, Alvarez & Marsal as restructuring adviser and Milbank as restructuring counsel to evaluate options for addressing near-term debt challenges, the people said. Incora faces interest payments due in May to holders of its more than $2bn in bonds.

Platinum Equity is a global investment firm with more than $25bn of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10bn global buyout fund, and Platinum Equity Small Cap Fund, a $1.5bn buyout fund focused on investment opportunities in the lower-middle market.

Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications, and other industries. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.

Source: Wall Street Journal

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