DISTRESSED DAILY: HVAC Company CoolSys Faces Cash Flow Struggles

Refrigeration and heating, ventilation, air conditioning provider CoolSys Inc.is struggling as its costs rise and it was forced to delay some projects amid supply chain problems.

CoolSys’s capital structure looks “unsustainable” to S&P Global Ratings analysts Dieynaba Kane and Thomas J Hartman if the company isn’t able to boost its profits and cash flows. The company burned $32 million of cash in the nine months through Sept. 30.

CoolSys had around $15 million of cash on hand as of the third-quarter and around $33 million available under its revolving credit line. The analysts expect the company’s liquidity to tighten ...