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Case Study: Internet Solutions ProviderCreditor and Vendor Management, Bankruptcy Consulting, Wind-down & Liquidation ManagementCompany: $260 million Internet solutions provider serving e-Business and Fortune 2000 clientsSituation / Tasks Performed: Excessive infrastructure, an inability to collect receivables and a poor sales and marketing function combined with a severe downturn in the dot-com industry was paralyzing the Company. The Company was in the midst of management-driven staff reductions and office closings when TRG was hired to provide assistance with trade, secured party and leasehold restructuring negotiations. TRG worked with the Company to negotiate with trade vendors to reduce exposure, restructure lease agreements, analyze cash requirements and profitability, increase liquidity and develop an on-going business plan. Once developed, TRG was involved in the initial implementation phase of the proposed restructuring plan. Revenues in the dot-com sector continued to suffer significant erosion. Consequently, implementation of the turnaround plan was unsuccessful. At this point, a wind-down of the business became imminent. TRG provided assistance and advice to the Company in evaluating alternative wind-down strategies. The Company ultimately filed for Chapter 11 protection and is currently conducting an orderly wind-down. The secured party has been paid-in-full. Results: TRG negotiated a $2.5 million reduction in trade debt exposure. Additionally, landlord liabilities were reduced from $51 million to approximately $6-7 million. Nature of Assignment: Primary: Creditor and Vendor Management Secondary: Bankruptcy Consulting Tertiary: Wind-down & Liquidation Management Industries: Technology, E-business |
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© Copyright 2007 The Recovery Group, Inc. All rights reserved |
