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Case Study

Technology Manufacturer

Technology development and manufacturing company.

Revenue

$1 billion

Industry

Technology, Manufacturing

Services Provided

Turnaround & Business Restructuring, Distressed M&A Support

Situation

Failed product launch resulted in severe operating losses and liquidity limitations which prevented ability to relaunch reformulated product. Leverage/hedge fund lender forced foreclosure because of loss in confidence over management actions. Management walked out when lender refused to finance product launch without adequate financial documentation or explanatory support.

Accomplishments

  • Served as Chief Restructuring Officer to sustain technology operations and preserve value of operating assets for sale. Secured lender initially expected a liquidation with a low percentage recovery against outstanding loan balance which became a full recovery of value.
  • Identified upside value in technology that had been developed and was ready to be launched but needed working capital. Maintained core personnel and technology development team in place to support value for prospective bidders. Coordinated preservation of technology and launch ready capabilities as part of a quick sale process.
  • Sale process resulted in sufficient value to pay-off secured lender, bond debt and all unsecured creditors; approximately a five-fold increase in value over expected liquidation value.