United Support Solutions, Inc. (“USS” or “the Company”), a diversified business, offering a complete range of ISO 9001:2008 certified manufacturing, engineering, and professional support services, has retained Heritage Equity Partners (“HEP”) to assist in the sale of the Company pursuant to Section 363 of the Bankruptcy Code, subject to the receipt of higher or better offers.
“After careful consideration of our options, we believe that Chapter 11 is a necessary step to create a solid foundation for future growth and the continued success of United Support Solutions, Inc.,” stated Joe Ostering, President of USS. “We are operating and plan to continue manufacturing quality products which our customers have come to expect from us. We have retained Heritage Equity Partners to ensure all options are explored that will allow our Company to emerge from bankruptcy properly capitalized and well positioned to continue serving customers and working with our vendors.”
USS has been family owned and operated since it was founded in 1980 by Joe Ostering’s father as a small silk-screening business. In fact, for the first several years, the Company operated out of the Ostering family garage. Since then, with growth, the Company has increased its services and customer base and now operates in two state of the art facilities totaling 51,000 square feet in Cedar Grove and Totowa, employing over 100 people at times. Operations expanded into precision fabrication, machining, and complete industrial finishing. It is now a one-stop manufacturing facility for a wide variety of customers in the commercial and medical industries, as well as the military. USS is still family owned and operated, with the founder’s two sons, Joe and John Ostering serving as President and Vice President.
The Company had seen impressive growth for several years and after landing a five year, $35 million government contract in 2013, ownership felt confident this positive trend would continue. As a result, the Company invested substantial funds in preparation of starting the contract, however because of sequestration, the contract was put on hold indefinitely, creating a significant cash constraint on the business given the sunken costs for set up. With the lack of working capital, it became untenable for the Company to continue operations under its existing debt structure and filed for Chapter 11 protection on October 19th.
According to Matt LoCascio, a Managing Director at HEP, there is already a “going concern stalking horse offer” in place assuring the Company will continue to operate. LoCascio continued, “The Company is in need of working capital to support growth and we are confident a positive result will be achieved in the next 30 days. Our role is to present all options to the Company, including bids in excess of the stalking horse, in order for the Osterings to choose the best solution for their employees, their customers, and their creditors.”
Heritage Equity Partners, formerly “Equity Partners”, based in Easton, MD provides investment banking services and has completed in excess of 400 engagements throughout the United States since 1988.