Apollo Global Management Inc.-backed Constellis Group Inc. has hired PJT Partners Inc. to help the defense contractor devise a restructuring plan to address its debt, which stood at $1.2 billion as of June 30, The Wall Street Journal reported, citing people familiar with the matter.
Constellis is in the midst of a cash crunch after a decrease in demand on security contracts for the U.S. State Department in Iraq and Afghanistan and the declining revenue on its base operations contract in Guantanamo Bay in Cuba, the sources said.
In the quarter ended June 30, the company's revenues were down 3.5% year over year to $417 million, while its adjusted EBITDA dropped 26% to $32 million, people familiar with the matter told the Journal.
Constellis recently closed a sale and leaseback of its flagship training facility in Moyock, N.C., in an attempt to infuse capital into the business. However, its liquidity remained tight to just $33 million of cash and $18 million of financing on its revolver as of June 30, according to the report.
Constellis and Apollo declined to comment, while PJT did not respond to the Journal's requests for comment.